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Maintaining Entities

The ENTITIES dimension contains the world-wide locations in which your company conducts business. As part of the initial setup of Longview, you must add your company’s entities to the system. The entities structures are configured during implementation but also require ongoing maintenance. For example, if your company expands and opens a new office, you need to add a new entity symbol.

For more information on the ENTITIES dimension, see:

For Tax Provision, the following sections apply:

The following general sections apply to Tax Provision, Task Management and Operational Transfer Pricing:

For information on changing the default settings for the Entities editor, see Configuring system settings.

If you want to view or print the Interim and Tax Account Rollforward configuration settings of your entities, you can do so by expanding Entities and selecting the Interim and TARF Entity Setup (XCCC800) report located in the Administration category of the Tax Provision navigation pane.

Understanding entity types

The root tax entity is TENTITIES and represents the primary entities on which provision calculations run. You can also create alternate hierarchies so that you can view results under various scenarios. For more information on root symbols for alternate hierarchies, see Understanding preconfigured root symbols in the ENTITIES dimension.

In addition to legal entities, Tax Provision includes functionality that allows you to add and use branch and partnership entities as part of the overall tax provision calculation. For legal and branch entities, you can select a jurisdiction and a legal entity grouping that can be used for reporting purposes and provision calculations. For information on adding a regular entity, see Adding legal, branch, and branch elimination entities.

Longview suggests that you create and adhere to entity naming conventions specific to your company in order to easily distinguish between the different types of entities in your system.

Understanding jurisdiction entities and legal entity groupings

Jurisdiction entities are part of the entity dimension to which legal entities are assigned. Jurisdiction entities are typically countries, but your Tax Administrator can configure your jurisdiction entities to meet the specific needs of your company. Information from jurisdiction entities can be used for both informational and reporting purposes, providing an alternate rollup to legal entities using the jurisdiction setting. You must specify a jurisdiction Entity when creating or modifying a legal entity, branch, branch elimination, or legal entity grouping.

Note: Jurisdiction entities are not the same as the Jurisdictions required for Task Management, which you must create in the Details dimension.

Legal entity groupings are a subcategory of jurisdiction entities that are used to group legal and branch entities for certain automation processes such as net operating loss automation and deferred tax netting. Legal entity groupings can also be used for reporting purposes, similar to jurisdictions. Legal entity groupings are required only if your company is using certain automation processes such as loss automation and deferred tax netting, or if your company wants to further refine jurisdiction settings.

Jurisdiction entities and legal entity groupings are organized in Tax Provision as follows:

  • All jurisdiction entities are organized under a jurisdiction hierarchy, Jurisdictions, within the ENTITIES dimension.
  • All legal entity groupings are also organized as subcategories in the Jurisdictions hierarchy.

For more information on adding a jurisdiction entity, see Adding jurisdiction entities. For more information on adding a legal entity grouping, see Adding legal entity groupings.

Understanding automation groups

Tax Provision provides automation groups as a way to simplify maintenance for entities that use the same, or similar, automation settings for net income before tax, book-tax differences, or current and deferred tax accounts.

When you are working in the Net Income Before Tax, Book-Tax Differences, or Current and Deferred Tax editors, you can override the default account automation settings for an automation group or for a specific entity. Any automation group overrides apply to all entities that are included in that automation group. If an entity should use similar, but not the same settings as the other members of an automation group, you can subsequently use entity-specific overrides to adjust the account automation settings.

Understanding Total Operations

The Total_Operations hierarchy groups entities under one of two parent symbols: Continuing Operations or Discontinued Operations. The Total_Operations hierarchy allows you to view all entities from the TENTITIES hierarchy by continued or discontinued operation status. The Total_Operations hierarchy allows for the loading and input of data for each entity regardless of operation status, but then allows users to view the results of Continuing Operations and Discontinued Operations separately. The Total_Operations hierarchy also increases ease of use for creating the income tax footnote if your company has any discontinued operations. The Longview default for added entities is Continuing Operations. For more information see Discontinued Operation.

Understanding partnerships and owners

Partnerships can be separate entities within Tax Provision where a percentage of the total provision details are allocated to individual corporate owner leaf entities. A corporate owner entity is generally treated as a child of the true corporate owner so that the corporate owner is comprised of the following entities:

  • An entity representing the operations of the corporate owner entity. This entity is treated as a regular entity.
  • An entity holding the corporate owner entity’s share of the partnership’s tax attributes, which flows into the corporate owner entity automatically based on the assigned percentage.

Tax Provision is configured to capture and reflect 100% of the partnership trial balances, activity, and related tax attributes, which are automatically allocated to corporate owners in accordance with their partnership interests.

Partnerships are set up in Tax Provision as follows:

  • All partnerships are organized under the PShip hierarchy.
  • The entities within the PShip entity hierarchy are used to track the tax attributes of the partnership on both a current and gross temporary difference basis. Since the partnerships are not taxed themselves but are taxed at the corporate owner level on their allocable share of the income, no tax is calculated on these entities.
  • The allocable share of the partnership’s tax attributes is allocated to the respective corporate owners for all current provision items as well as the gross temporary differences of the partnership entity.
  • The Partnership Master Information (XCCC303) report is available to reflect the corporate owners and their ownership percentages, and any changes to these percentages.

For information on adding a partnership entity, see Adding partnership entities. For more information on assigning an owner entity, see Assigning owner entities.

Understanding branches

Tax Provision handles branches by taking into consideration the fact that branches have income taxed in multiple jurisdictions: both the country of incorporation or organization, and the country in which the branch is doing business.

For example, a US entity has a branch in France. Based on this, the company owes tax in the US as the entity is incorporated in the US, and the company owes tax in France as it is doing business in France. In this situation, the company owes tax to two different countries based on the same income.

To account for these circumstances, three entities are required by the Tax Provision system:

  1. A legal entity, which reports its taxable income and related tax based on the rules of its country of incorporation or organization. This entity is included in the TENTITIES hierarchy.
  2. A branch entity, which reports its taxable income and related tax based on the rules of the country in which it is doing business. This entity is created in the TENTITIES hierarchy and is automatically assigned to the BRANCHES entity hierarchy when it is defined as a branch.

    The Branch Income Transfer process copies the net income before tax of the legal entity to both the legal entity and branch entity. This process allows for both entities to record the tax based on the rules of the country to which tax is owed.

  3. An elimination entity is needed to offset the net income before tax that has been automatically populated to both the legal entity and the branch entity. As part of the Branch Income Transfer process, the inverse of the pre-tax income is copied into the elimination entity to ensure there is no impact on the consolidated net income before tax. This entity has no tax rate, because it is used only to offset the duplicate net income before tax. This entity is created in the TENTITIES hierarchy and is automatically assigned to the BRANCHES entity hierarchy under the BRANCHELIM parent when it is defined as a branch.

    While the elimination entity is used to eliminate the double counting of the entity’s pre-tax income for consolidation purposes, a foreign tax credit is used to offset the double taxation resulting from the two separate tax provisions on the same income. The foreign tax credit has both automated and manual portions. The automated portion is reflected in the legal entity and represents the inverse of the tax calculated at the branch entity. This provides a starting point for the available foreign tax credit which can be adjusted using the manual input account.

Note: Branch Foreign Tax Credit automation is available only for ASC systems.

For information on adding a branch or a branch elimination, see Adding legal, branch, and branch elimination entities.

Understanding pre-configured root symbols in the ENTITIES dimension

The following table lists preconfigured root symbols in the ENTITIES dimension:

Root symbol Product Description
TENTITIES Tax Provision This symbol is used for the tax provision process. All legal, branch, and branch elimination entities must be assigned to this root to be included in the tax provision process.
Jurisdictions Tax Provision

This symbol contains jurisdiction entities and legal entity groupings. Information from jurisdiction entities can be used for both informational and reporting purposes, providing an alternate rollup to legal entities.

Legal entity groupings are a subcategory of jurisdiction entities that are used to group legal and branch entities for certain automation processes, such as net operation loss automation and deferred tax netting. Legal entity groupings can also be used for reporting purposes, similar to jurisdiction entities.
Automation_Groups Tax Provision This symbol contains the automation groups created for your system. Automation groups consist of entities that use the same, or very similar, automation settings for net income before tax, book-tax differences, or current and deferred tax accounts. For more information, see Adding automation groups.
Total_Operations Tax Provision The symbol groups entities under one of two parent symbols: Continuing Operations or Discontinued Operations and allows you to view all entities from the TENTITIES hierarchy by continued or discontinued operation status.
PShip Tax Provision This symbol contains all the partnership entities for the system. The entities within the PShip hierarchy are used to track the tax attributes of the partnership on both a current and gross temporary difference basis. Since the partnerships are not taxed themselves but are taxed at the corporate owner level on their allocable share of the income, no tax is calculated on these entities.
BRANCHES Tax Provision This symbol contains all the branch and branch elimination entities for the system. This system allows for a branch to record the tax based on the rules of the country to which tax is owed.
ENTITIESHIER1 Tax Provision and Task Management

These symbols are for any alternate hierarchies, including entities used for Task Management.

For Tax Provision, your company can use these alternate hierarchies to calculate interim effective tax rates at a sub-consolidated level, or to provide alternate reporting structures for custom reports.

You should not select any of these symbols in calculation configuration settings. Create a parent symbol under these roots and use this new symbol for any calculation configuration settings.

Longview also recommends that you grant access at the group level to the parent symbols you create under these roots, and never grant group access to the roots themselves.
ENTITIESHIER2
ENTITIESHIER3
ENTITIESHIER4
ENTITIESHIER5

Adding jurisdiction entities

Jurisdiction entities are typically countries, but you can configure your jurisdiction entities to meet the specific needs of your company. Because you must select an jurisdiction entity when creating other entity types, such as legal entities or branches, you may want to create the required jurisdiction entities first.

Note: Jurisdiction entities are not the same as the Jurisdictions required for Task Management, which are created in the Details dimension. For information on these jurisdictions, see “Maintaining Task Management jurisdictions”.

To add a jurisdiction entity

  1. In the Tax Provision navigation pane, click Administration.
  2. Expand Entities, and then click Entities. The Entities editor opens in the workspace with the Total Entities page in view.
  3. Click the Jurisdictions and Legal Entity Groupings tab. The Jurisdictions page comes into view.
  4. Select the Jurisdictions row.
  5. Click Jurisdiction.
  6. Complete the following fields:
    Field Notes
    Entity Name Type a name for the entity jurisdiction. Entity names can contain up to 31 alphanumeric characters, and can contain underscores ( _ ) and periods ( . ).
    Description Type a description for the entity jurisdiction. Entity descriptions can be up to 100 characters.
    Sort Order

    Specify a numeric value from 1 and up representing the order of the symbol with respect to its parent. By default, the sort order for added symbols is 10 higher than the last child of the same parent symbol.

    If you specify a value of 0, the symbol appears at the bottom of the list.
    Rollup Specify whether the entity has positive impact ( + ), negative impact ( - ) or no impact ( 0 ) on its parent. The default is +.
    Functional Currency Specify the functional currency to use for the entity. Entities that are children of the same Legal Entity Grouping must have the same functional currency.
  7. Click OK. The entity is added to the Jurisdictions hierarchy.
  8. Click Save.

Adding legal entity groupings

Legal entity groupings are a subcategory of jurisdiction entities that are used to group legal and branch entities for certain automation processes such as net operation loss automation and deferred tax netting.

Note: All members of a Legal Entity Grouping must have the same functional currency.

To add a legal entity grouping

  1. In the Tax Provision navigation pane, click Administration.
  2. Expand Entities, and then click Entities. The Entities editor opens in the workspace with the Total Entities page in view.
  3. Click the Jurisdictions and Legal Entity Groupings tab.
  4. Select the appropriate parent for the entity, and then click Legal Entity Grouping. A new row appears.
  5. Complete the following fields:
    Field Notes
    Entity Name Type a name for the legal entity grouping. Entity names can contain up to 31 alphanumeric characters, and can contain underscores ( _ ) and periods ( . ).
    Description Type a description for the legal entity grouping. Entity descriptions can be up to 100 characters.
    Sort Order

    Specify a numeric value from 1 and up representing the order of the symbol with respect to its parent. By default, the sort order for added symbols is 10 higher than the last child of the same parent symbol. If you specify a value of 0, the symbol appears at the bottom of the list.
    Rollup Specify whether the entity has positive impact ( + ), negative impact ( - ) or no impact ( 0 ) on its parent. The default is +.
    Functional Currency Specify the functional currency to use for the entity. Entities that are children of the same Legal Entity Grouping must have the same functional currency.
    Calculate Netting Adjustment

    This field displays only if Use Deferred Tax Netting is selected in the System Settings editor. Select this option to use jurisdictional netting for the entity.

    For more information, see Configuring system switches.
    Loss Position

    This field displays only if Use Loss Carryforward Automation is selected in the System Settings editor. Select this option if the legal entity grouping is in a loss position.

    For more information, see Configuring system switches.
    Parent Select a jurisdiction symbol for the parent symbol for the entity. Type the name, use the drop-down list, or use the symbol selector to select the Parent symbol. For more information on searching for symbols, see Using the Symbol Selector.
  6. Click OK. The entity is added to the Jurisdictions hierarchy.
  7. Click Save.

Adding automation groups

If your company has entities that use the same, or very similar, automation settings for net income before tax, book-tax differences, or current and deferred tax accounts, you can organize these entities in automation groups to simplify maintenance.

Once you have created an automation group, you can use the Total Entities or Partnerships page to assign the relevant entities to the group. For more information, see Adding legal, branch, and branch elimination entities and Adding partnership entities.

When you are working in the Net Income Before Tax, Book-Tax Differences, or Current and Deferred Tax editors, you can override the default account automation settings for an automation group or for a specific entity. Any automation group overrides apply to all entities that are included in that automation group. If an entity should use similar, but not the same settings as the other members of an automation group, you can subsequently use entity-specific overrides to adjust the account automation settings.

For more information, see the following sections:

  • Overriding NIBT account default settings for an entity or automation group
  • Overriding book-tax difference settings for an entity or automation group
  • Overriding deferred tax default settings for an entity or automation group

To add an automation group

  1. In the Tax Provision navigation pane, click Administration.
  2. Expand Entities, and then click Entities. The Entities editor opens in the workspace with the Total Entities page in view.
  3. Click the Automation Groups tab. The Automation Groups page comes into view.
  4. Select the Automation_Groups root symbol, and then click Automation Group. A new row appears.
  5. Complete the following fields:
    Field Notes
    Name Type a name for the automation group. Automation group names can contain up to 31 alphanumeric characters, and can contain underscores ( _ ) and periods ( . ).
    Description Type a description for the automation group. Automation group descriptions can be up to 100 characters.
    Sort Order

    Specify a numeric value from 1 and up representing the order of the symbol with respect to its parent. By default, the sort order for added symbols is 10 higher than the last child of the same parent symbol.

    If you specify a value of 0, the symbol appears at the bottom of the list.
  6. When you are finished, click OK. The new automation group appears in the list.
  7. Click Save.

Adding legal, branch, and branch elimination entities

You can add a legal, branch, or branch elimination entity to your Tax Provision system using the Entities editor. For more information on entity types, see Understanding entity types.

To add a legal, branch, or branch elimination entity

  1. In the Tax Provision navigation pane, click Administration.
  2. Expand Entities, and then click Entities. The Entities editor opens in the workspace with the Total Entities page in view.
  3. Select the appropriate parent for the entity, and then click Entity. A new row appears.
  4. Complete the following fields:
    Field Notes
    Entity Name Type a name for the entity. Entity names can be up to 31 alphanumeric characters, and can contain underscores ( _ ) and periods ( . ).
    Description Type a description for the entity. Entity descriptions can be up to 100 characters.
    Sort Order

    Specify a numeric value from 1 and up representing the order of the symbol with respect to its parent. By default, the sort order for added symbols is 10 higher than the last child of the same parent symbol.

    If you specify a value of 0, the symbol appears at the bottom of the list.
    Rollup Specify whether the entity has positive impact ( + ), negative impact ( - ) or no impact ( 0 ) on its parent. The default is +.
    Functional Currency Specify the functional currency to use for the entity.
    Parent Select a parent symbol for the entity. Type the name of an entity, use the drop-down list, or use the symbol selector to select the parent symbol. For more information on searching for symbols see Using the Symbol Selector.

    Caution: If you select a leaf symbol, that leaf will become a parent and, consequently, its data and settings are lost.
  5. If you are adding a parent entity, proceed to step 9. If you are adding a leaf entity, complete the following fields.
    Field Notes

    Type

    		 Select one of the following:
    • Legal Entity — Use this value for regular legal entities.
    • Branch — Use this value for foreign operations that should be treated as a branch operation of a domestic entity. For more information on how Tax Provision processes branches, see Understanding branches.
    • Branch Elimination — Use a Branch Elimination to offset the net income before tax that has been automatically populated to both the legal entity and the branch entity. This entity has no tax rate because it is used only to offset the duplicate net income before tax, and is included in the BRANCHES entity hierarchy under the BRANCHELIM parent.
    Country

    This field displays only if you have specified active countries. For more information, see Specifying active countries.

    Select a country to assign the entity to. This field is optional and applies to country by country reporting.
    Jurisdiction Select a jurisdiction entity. This field is mandatory.

    Note: To select a jurisdiction, you must first create jurisdiction entities. For more information see Adding jurisdiction entities.
    Legal Entity Grouping Select a legal entity grouping. This field is optional. Entities that are children of the same Legal Entity Grouping must have the same functional currency.

    Note: To select a legal entity grouping, you must first create legal entity groupings. For more information see Adding legal entity groupings.
    Automation Group If you want to assign the entity to an automation group, select the appropriate automation group. If you select an automation group, the entity uses the automation settings assigned to the automation group for net income before tax, book-tax differences, or current and deferred tax accounts, unless you set an entity-specific override.

    Note: To select an automation group, you must first create automation groups. For more information see Adding automation groups.
    Calculation Level

    This setting applies only if Use Entity Calculation Level is selected in the System Settings editor.

    Select this setting if you want this entity to act as the calculation level for deferred tax classification, netting, and valuation allowances for all leaf entities below it. This setting applies only to parent entities

    If you do not specify a calculation level, deferred tax classification, netting, and valuation allowances are calculated at the legal entity level.

    By default, this setting is cleared.
    Calculate Regional Provision Select this option to calculate a regional provision for the entity.
    Calculate National Benefit of Region Select this option to calculate the national benefit of region for the entity. This option is available only if Calculate Regional Provision is selected.
    Use Deferred Tax Scheduling Select this option to calculate deferred tax scheduling for the entity.
    Discontinued Operation Select this option to remove the entity from Continuing Operation and move it to Discontinued Operation.
    Calculate Netting Adjustment

    This field displays only if Use Deferred Tax Netting is selected in the System Settings editor. Select this option to use jurisdictional netting for the entity.

    For more information see Configuring system switches.
    Automate Deferred Tax Amounts

    Depending on the values set for Deferred Tax Automation - Automation Method and Deferred Tax Automation - Display Automation Settings in the System Settings editor, this field may not display. Select this option to automate temporary difference ending balances for the entity.

    For more information, see Configuring Deferred Tax automation settings.
    Automate Current Tax Amounts

    Depending on the values set for Current Tax Automation - Allow Automation of Current Tax and Current Tax Automation - Display Automation Settings, this field may not display. Select this option to automatically transfer current tax amounts for Book-Tax Differences for this entity.

    For more information, see Configuring Current Tax automation settings.
    Automate Loss Carryforward Adjustment

    This field displays only if Use Loss Carryforward Automation is selected in the System Settings editor. Select this option to automate the loss carryforward adjustment.

    For more information see Configuring system switches.
    TARF Actual Transfer Timeframe Select a TARF timeframe for actual periods for the entity.
    Calculate Interim Select this option to calculate an interim provision for the entity.
  6. Do one of the following:
    • If you selected Calculate Interim, complete step 7 and step 8.
    • If you did not select Calculate Interim, continue to step 9.
  7. Specify the entity settings for interim ETR, if applicable.
    Field Notes
    Entity Level for Interim ETR

    Select the interim ETR level for the entity.

    • Legal Entity — Use this value to calculate the interim ETR at the legal entity level.
    • Sub-Consolidated — Use this value to calculate the interim ETR for the entity at a sub-consolidated level. If you use this value, you must specify a sub-consolidation parent for the Sub-Consolidation Entity for Interim ETR.

    This setting is available only if the Entity Level for Interim ETR system setting is set to Defined by Entity.
    Sub-Consolidation Entity for Interim ETR

    If you selected Sub-Consolidated as the Entity Level for Interim ETR, you must specify the sub-consolidation parent symbol to use for the interim ETR calculation.

    If the Entity Level for Interim ETR is Legal Entity, this setting is unavailable.

    This setting is available only if the Entity Level for Interim ETR system setting is set to Sub-Consolidated or Defined by Entity.
    Include in National Current Interim ETR

    Select this option to calculate a national current interim ETR for this entity. If you choose to exclude an entity from the interim ETR calculation, the entity’s national current interim ETR is adjusted to 0.

    If the Entity Level for Interim ETR system setting is Legal Entity, this setting is unavailable.
    Include in National Deferred Interim ETR

    Select this option to calculate a national deferred interim ETR for this entity. If you choose to exclude an entity from the interim ETR calculation, the entity’s national deferred interim ETR is adjusted to 0.

    If the Entity Level for Interim ETR system setting is Legal Entity, this setting is unavailable.
    Include in Regional Current Interim ETR

    Select this option to calculate a regional current interim ETR for this entity. If you choose to exclude an entity from the interim ETR calculation, the entity’s regional current interim ETR is adjusted to 0.

    This setting is available only if Calculate Regional Provision is selected for the entity.

    If the Entity Level for Interim ETR system setting is Legal Entity, this setting is unavailable.
    Include in Regional Deferred Interim ETR

    Select this option to calculate a regional deferred interim ETR for this entity. If you choose to exclude an entity from the interim ETR calculation, the entity’s regional deferred interim ETR is adjusted to 0.

    This setting is available only if Calculate Regional Provision is selected for the entity.

    If the Entity Level for Interim ETR system setting is Legal Entity, this setting is unavailable.
  8. Specify the interim rate change type:
    Field Notes
    Interim Rate Change Type

    This setting applies to ASC systems only.

    Select one of the following:

    • Actual — Bases the interim rate change on the actuals rate change.
    • Forecast — Bases the interim rate change on the full year forecasted amount.
    • Prorate — Bases the interim rate change on the prorated forecasted amount; prorated by number of months elapsed to total months in the year.

    This field is available only if Calculate Interim is selected.
  9. Specify the TARF timeframe:
    Field Notes
    TARF Interim Transfer Timeframe

    Select a TARF timeframe for interim periods for the entity. If you selected Calculate Interim, Longview recommends that you set this value to TFINTERIM. If you did not select Calculate Interim, Longview recommends that you set this value to TFACTUALS.
  10. Click OK. If you added a legal entity, the entity is added to the TENTITIES hierarchy. If you added a branch or a branch elimination, the entity is added to both the TENTITIES and BRANCHES hierarchies.
  11. Do one of the following:
    • If you added a Branch, continue to the next step.
    • If you added a Legal Entity or a Branch Elimination, continue to step 15.
  12. Click the Branches tab. The Branches page comes into view.
  13. Select the branch entity you just added.
  14. Double-click the following fields and edit them as necessary:
    Field Notes
    Legal Entity Select a symbol for the associated branch entity. Type the name of an entity, use the drop-down list, or use the symbol selector to select the legal entity symbol. For more information on searching for symbols, see Using the Symbol Selector.
    Branch Elimination Select a symbol for the associated elimination entity. Type the name of an entity, use the drop-down list, or use the symbol selector to select the branch elimination symbol. For more information on searching for symbols, see Using the Symbol Selector.
  15. Click Save.

Assigning entities from alternate hierarchies to Total Entities

In some cases, you may want to include an entity that you created in an alternate hierarchy in Total Entities. You can do this by assigning the symbol from the alternate hierarchy to TENTITIES.

Note: When you assign a symbol to Total Entities, the symbol remains unaffected in its original location.

To assign an entity to Total Entities

  1. In the Tax Provision navigation pane, click Administration.
  2. Expand Entities, and then click Entities. The Entities editor opens in the workspace with the Total Entities page in view.
  3. Select the appropriate parent, and then click Assign. A new row appears.
  4. For Symbol to Assign, type the name of the alternate hierarchy entity that you want to assign to Total Entities, or select an entity from one of the alternate hierarchies in the drop-down list. Alternatively, you can use the symbol selector. For more information on searching for symbols, see Using the Symbol Selector.
  5. For Parent, type the name of the desired parent symbol, or select an entity in the drop-down list. Alternatively, you can use the symbol selector. For more information on searching for symbols, see Using the Symbol Selector. By default, the Parent symbol is populated with the symbol that you selected in step 3.

    Caution: If you select a leaf symbol, that leaf will become a parent and, consequently, its data and settings are lost.

  6. Modify the following fields as necessary

    Note: By default, these fields inherit the values from the selected entity.

    Field Notes
    Type

    Select one of the following:

    • Legal Entity — Use this value for regular legal entities.
    • Branch — Use this value for foreign operations that should be treated as a branch operation of a domestic entity. For more information on how Tax Provision processes branches, see Understanding branches.
    • Branch Elimination — Use a Branch Elimination to offset the net income before tax that has been automatically populated to both the legal entity and the branch entity. This entity has no tax rate because it is used only to offset the duplicate net income before tax, and is included in the BRANCHES entity hierarchy under the BRANCHELIM parent.
    Jurisdiction Select a jurisdiction entity. This field is mandatory.

    Note: To select a jurisdiction, you must first create jurisdiction entities. For more information see Adding jurisdiction entities.
    Legal Entity Grouping Select a legal entity grouping. This field is optional. Entities that are children of the same Legal Entity Grouping must have the same functional currency.

    Note: To select a legal entity grouping, you must first create legal entity groupings. For more information see Adding legal entity groupings.
    Automation Group If you want to assign the entity to an automation group, select the appropriate automation group. If you select an automation group, the entity uses the automation settings assigned to the automation group for net income before tax, book-tax differences, or current and deferred tax accounts, unless you set an entity-specific override.

    Note: To select an automation group, you must first create automation groups. For more information see Adding automation groups.
    Calculate Regional Provision Select this option to calculate a regional provision for the entity.
    Calculate National Benefit of Region Select this option to calculate the national benefit of region for the entity. This option is available only if Calculate Regional Provision is selected.
    Use Deferred Tax Scheduling Select this option to calculate deferred tax scheduling for the entity.
    Discontinued Operation Select this option to remove the entity from Continuing Operation and move it to Discontinued Operation.
    Calculate Netting Adjustment

    This field displays only if Use Deferred Tax Netting is selected in the System Settings editor. Select this option to use jurisdictional netting for the entity.

    For more information see Configuring system switches.
    Automate Deferred Tax Amounts

    Depending on the values set for Deferred Tax Automation - Automation Method and Deferred Tax Automation - Display Automation Settings in the System Settings editor, this field may not display. Select this option to automate temporary difference ending balances for the entity.

    For more information, see Configuring Deferred Tax automation settings.
    Automate Current Tax Amounts

    Depending on the values set for Current Tax Automation - Allow Automation of Current Tax and Current Tax Automation - Display Automation Settings, this field may not display.

    Select this option to automatically transfer current tax amounts for Book-Tax Differences for this entity.

    For more information, see Configuring Current Tax automation settings.
    Automate Loss Carryforward Adjustment

    This field displays only if Use Loss Carryforward Automation is selected in the System Settings editor. Select this option to automate the loss carryforward adjustment.

    For more information see Configuring system switches.
    TARF Actual Transfer Timeframe Select a TARF timeframe for actual periods for the entity.
    Calculate Interim Select this option to calculate an interim provision for the entity.
  7. Do one of the following:
    • If you selected Calculate Interim, complete step 8 and step 9.
    • If you did not select Calculate Interim, continue to step 10.
  8. Specify the entity settings for interim ETR, if applicable.
    Field Notes
    Entity Level for Interim ETR

    Select the interim ETR level for the entity.

    • Legal Entity — Use this value to calculate the interim ETR at the legal entity level.
    • Sub-Consolidated — Use this value to calculate the interim ETR for the entity at a sub-consolidated level. If you use this value, you must specify a sub-consolidation parent for the Sub-Consolidation Entity for Interim ETR.

    This setting is available only if the Entity Level for Interim ETR system setting is set to Defined by Entity.
    Sub-Consolidation Entity for Interim ETR

    If you selected Sub-Consolidated as the Entity Level for Interim ETR, you must specify the sub-consolidation parent symbol to use for the interim ETR calculation. If the Entity Level for Interim ETR is Legal Entity, this setting is unavailable.

    This setting is available only if the Entity Level for Interim ETR system setting is set to Sub-Consolidated or Defined by Entity.
    Include in National Current Interim ETR Select this option to calculate a national current interim ETR for this entity. If you choose to exclude an entity from the interim ETR calculation, the entity’s national current interim ETR is adjusted to 0. If the Entity Level for Interim ETR is Legal Entity, this setting is unavailable.
    Include in National Deferred Interim ETR

    Select this option to calculate a national deferred interim ETR for this entity. If you choose to exclude an entity from the interim ETR calculation, the entity’s national deferred interim ETR is adjusted to 0.

    If the Entity Level for Interim ETR is Legal Entity, this setting is unavailable.
    Include in Regional Current Interim ETR

    Select this option to calculate a regional current interim ETR for this entity. If you choose to exclude an entity from the interim ETR calculation, the entity’s regional current interim ETR is adjusted to 0. This setting is available only if Calculate Regional Provision is selected for the entity.

    If the Entity Level for Interim ETR is Legal Entity, this setting is unavailable.
    Include in Regional Deferred Interim ETR

    Select this option to calculate a regional deferred interim ETR for this entity. If you choose to exclude an entity from the interim ETR calculation, the entity’s regional deferred interim ETR is adjusted to 0.

    This setting is available only if Calculate Regional Provision is selected for the entity. If the Entity Level for Interim ETR is Legal Entity, this setting is unavailable.
  9. Specify the interim rate change type:
    Field Notes
    Interim Rate Change Type

    This setting applies to ASC systems only.

    Select one of the following:

    • Actual — Bases the interim rate change on the actuals rate change.
    • Forecast — Bases the interim rate change on the full year forecasted amount.
    • Prorate — Bases the interim rate change on the prorated forecasted amount; prorated by number of months elapsed to total months in the year.

    This field is available only if Calculate Interim is selected.
  10. Specify the TARF timeframe:
    Field Notes
    TARF Interim Transfer Timeframe

    Select a TARF timeframe for interim periods for the entity. If you selected Calculate Interim, Longview recommends that you set this value to TFINTERIM. If you did not select Calculate Interim, Longview recommends that you set this value to TFACTUALS.
  11. Click OK. If you added a legal entity, the entity is added to the TENTITIES hierarchy. If you added a branch or a branch elimination, the entity is added to both the TENTITIES and BRANCHES hierarchies.
  12. Do one of the following:
    • If you assigned a Branch, continue to the next step.
    • If you assigned a Legal Entity or a Branch Elimination, continue to step 15.
  13. Click the Branches tab. The Branch page comes into view.
  14. Select the branch entity you just assigned.
  15. Double-click the following fields and edit them as necessary:
    Field Notes
    Legal Entity Select a symbol for the associated branch entity. Type the name of an entity, use the drop-down list, or use the symbol selector to select the legal entity symbol. For more information on searching for symbols, see Using the Symbol Selector.
    Branch Elimination Select a symbol for the associated elimination entity. Type the name of an entity, use the drop-down list, or use the symbol selector to select the branch elimination symbol. For more information on searching for symbols, see Using the Symbol Selector.
  16. Click Save.

Adding partnership entities

Partnerships can be separate entities within Tax Provision where a percentage of the total provision details are allocated to individual corporate owner leaf entities. For more information on how Tax Provision processes partnerships, see Understanding partnerships and owners.

If you want to view or print all partnership information, you can do so by selecting the Partnership Master Information (XCCC303) report located under Entities in the Administration category of Tax Provision.

For information on partnership owners, see Assigning owner entities.

To add a partnership entity

  1. In the Tax Provision navigation pane, click Administration.
  2. Expand Entities, and then click Entities. The Entities editor opens in the workspace with the Total Entities page in view.
  3. Click the Partnership tab. The PShip page comes into view.
  4. Select the appropriate parent and then click Partnership. A new row appears.
  5. Complete the following fields:
    Field Notes
    Entity Name Type a name for the partnership entity. Entity names can contain up to 31 alphanumeric characters, and can contain underscores ( _ ) and periods ( . ).
    Description Type a description for the entity. Entity descriptions can be up to 100 characters.
    Sort Order

    Specify a numeric value from 1 and up representing the order of the symbol with respect to its parent. By default, the sort order for added symbols is 10 higher than the last child of the same parent symbol. If you specify a value of 0, the symbol appears at the bottom of the list.
    Functional Currency Specify the functional currency to use for the entity.
    Automation Group If you want to assign the entity to an automation group, select the appropriate automation group. If you select an automation group, the entity uses the automation settings assigned to the automation group for net income before tax, book-tax differences, or current and deferred tax accounts, unless you set an entity-specific override.

    Note: To select an automation group, you must first create automation groups. For more information see Adding automation groups.
    Use Deferred Tax Scheduling Select this option to calculate deferred tax scheduling for the entity.
    Automate Deferred Tax Amounts

    Depending on the values set for Deferred Tax Automation - Automation Method and Deferred Tax Automation - Display Automation Settings in the System Settings editor, this field may not display. Select this option to automate temporary difference ending balances for the entity.

    For more information, see Configuring Deferred Tax automation settings.
    Automate Current Tax Amounts

    Depending on the values set for Current Tax Automation - Allow Automation of Current Tax and Current Tax Automation - Display Automation Settings, this field may not display. Select this option to automatically transfer current tax amounts for Book-Tax Differences for this entity.

    For more information, see "Configuring Current Tax automation settings.
    Automate Loss Carryforward Adjustment

    This field displays only if Use Loss Carryforward Automation is selected in the System Settings editor. Select this option to automate the loss carryforward adjustment.

    For more information see Configuring system switches.
    Calculate Interim Select this option to calculate an interim provision for the entity.
  6. Click OK. The entity is added to the PShip hierarchy.
  7. Click Save. 

Assigning owner entities

Partnerships can be separate entities within Tax Provision where a percentage of the total provision details are allocated to individual corporate owner leaf entities.

To assign an owner entity

  1. In the Tax Provision navigation pane, click Administration.
  2. Expand Entities, and then click Entities. The Entities editor opens in the workspace with the Total Entities page in view.
  3. Add the appropriate legal entity. For more information, see Adding legal, branch, and branch elimination entities.
  4. Click the Partnerships tab. The Partnerships page comes into view.
  5. Select the appropriate partnership for which to assign the owner entity.
  6. Click Owner. A new row appears.
  7. Complete the following fields:
    Field Notes
    Owner Select the entity you just added. Type the name, use the drop-down list, or use the symbol selector to select the entity. For more information on searching for symbols, see Using the Symbol Selector. A partnership can have a maximum of 20 assigned owners.
    Partnership Select the Partnership parent entity for the new owner. Type the name, use the drop-down list, or use the symbol selector to select the entity. For more information on searching for symbols, see Using the Symbol Selector.
    Ownership Specify the percentage owned by this entity. For example, for 35%, type 35. Ownership percentage totals cannot exceed 100%.
  8. Click OK. The owner entity is assigned to the partnership.

    Note: At any time you can remove an Owner entity from a Partnership by selecting the entity and clicking Remove.

  9. Click Save.
  10. Open the Users or User Groups editor and grant read access to the owner entity.

    Caution: If an owner entity is set to write access, and a user is accessing a related input app while the calculation is running, a lock conflict occurs.

Adding alternate hierarchy entities

For Tax Provision, your company can use alternate hierarchies in the ENTITIES dimension to calculate interim effective tax rates at a sub-consolidated level or to provide alternate reporting structures for custom reports.

For Task Management, your company can use alternate hierarchies in the ENTITIES dimension to hold the entities used in the Task Administration and Tasks apps.

Longview provides the following preconfigured root symbols for your alternate entity hierarchies:

  • ENTITIESHIER1
  • ENTITIESHIER2
  • ENTITIESHIER3
  • ENTITIESHIER4
  • ENTITIESHIER5

You should not select any of these symbols in calculation configuration settings. Create a parent symbol under these roots and use this new symbol for any calculation configuration settings.

Longview also recommends that you grant access at the user or user group level to the parent symbols you create under these roots, and never grant user or user group access to the roots themselves.

If the entity you want to add to an alternate hierarchy already exists in TENTITIES or another alternate hierarchy, you can assign it to an alternate hierarchy without recreating it. For more information, see Assigning entities to alternate hierarchies.

To add an entity to an alternate hierarchy

  1. In the Tax Provision or Task Management navigation pane, click Administration, and then expand Entities.
  2. Click Entities. The Entities editor opens in the workspace with the Total Entities page in view.
  3. Click the Alternate Hierarchies tab. The Alternate Hierarchies page comes into view.
  4. Select the appropriate parent, and then click Entity. A new row appears.
  5. Complete the following fields:
    Field Notes
    Entity Name Type a name for the entity. Entity names can be up to 31 alphanumeric characters, and can contain underscores ( _ ) and periods ( . ).
    Description Type a description for the entity. Entity descriptions can be up to 100 characters.
    Sort Order

    Specify a numeric value from 1 and up representing the order of the symbol with respect to its parent. By default, the sort order for added symbols is 10 higher than the last child of the same parent symbol. If you specify a value of 0, the symbol appears at the bottom of the list.
    Rollup Specify whether the entity has positive impact ( + ), negative impact ( - ) or no impact ( 0 ) on its parent. The default is +.
    Functional Currency Specify the functional currency to use for the entity.
    Parent

    Select a parent symbol for the entity. Type the name of an entity, use the drop-down list, or use the symbol selector to select the parent symbol. You can select a parent symbol from any symbol in Alternate Entities (EntitiesHier1 — 5).

    For more information on searching for symbols see Using the Symbol Selector.
  6. Click OK. The entity appears in the selected hierarchy.
  7. Click Save. 

Assigning entities to alternate hierarchies

In some cases, you may want to build an alternate hierarchy from pre-existing symbols in the Total Entities hierarchy, or in another alternate hierarchy. You can do this by assigning the symbol from TENTITIES, or the alternate hierarchy, to the appropriate alternate hierarchy.

Note: When you assign a symbol to an alternate hierarchy, the symbol remains unaffected in its original location.

To assign an entity to an alternate hierarchy

  1. In the Tax Provision or Task Management navigation pane, click Administration, and then expand Entities.
  2. Expand Entities, and then click Entities. The Entities editor opens in the workspace with the Total Entities page in view.
  3. Click the Alternate Hierarchies tab. The Alternate Hierarchies page comes into view.
  4. Select the appropriate parent, and then click Assign. A new row appears.
  5. For Symbol to Assign, type the name of the entity you want to assign to the new hierarchy, or select an entity in the drop-down list. Alternatively, you can use the symbol selector. For more information on searching for symbols, see Using the Symbol Selector.
  6. For Parent, type the name of the desired parent symbol, or select an entity in the drop-down list. Alternatively, you can use the symbol selector. For more information on searching for symbols, see Using the Symbol Selector. By default, the Parent symbol is populated with the symbol that you selected in step 4.

    Caution: If you select a leaf symbol, that leaf will become a parent and, consequently, its data and settings are lost.

  7. Edit the following fields as necessary:
    Field Notes
    Sort Order

    Specify a numeric value from 1 and up representing the order of the symbol with respect to its parent. If you specify a value of 0, the symbol appears at the bottom of the list.
    Rollup Specify whether the entity has positive impact ( + ), negative impact ( - ) or no impact ( 0 ) on its parent. The default is +.
    Functional Currency Specify the functional currency to use for the entity.
  8. When you are finished, click OK. The entity is added to the alternate hierarchy.
  9. Click Save.

Working with regional groups

You can use regional groups for regions that require a group filing.

Adding regional groups

You can use the Entities editor to add regional groups.

To add a regional group

  1. In the Tax Provision navigation pane, click Administration, and then expand Entities.
  2. Click Entities. The Entities editor opens in the workspace with the Total Entities page in view.
  3. Click the Regional Groups tab. The Regional Groups page comes into view.
  4. Click Regional Group. A new row appears.
  5. Complete the following fields:
    Field Notes
    Name Type a name for the regional group. Regional Group names can include up to 25 alphanumeric characters and can contain underscores ( _ ) and periods ( . ).
    Description Type a description for the regional group. Regional group descriptions can be up to 100 characters.
    Functional Currency Specify the functional currency to be used for the regional group.
    Group Type Specify one of the following options for the reporting group type:
    • Consolidated
    • Combined
    • World-Wide
    • Waters Edge
    • Nexus Combined
    • Nexus Consolidated
    • Separate
    • Unitary

    Currently, this field is for information purposes only and does not impact calculations.
    Calculation Type

    Specify the calculation type for the regional group from one of the following options:

    • Consolidated Income — Calculates values at the legal entity level by multiplying the group's consolidated income by an apportionment factor equal to the legal entity numerator and the group's denominator. For this calculation type, the same income is used for each entity but a different apportionment factor is applied.
    • Consolidated Apportionment — Calculates values at the legal entity level by multiplying the legal entity's income by an apportionment factor equal to the group's numerator and denominator. For this calculation type, the same apportionment factor is applied to each entity but a different income is used.
    • Rollup — Calculates the result as the sum of tax calculated for each of the legal entities within in the group.
    • Group Consolidation Adjustment — Calculates tax at the consolidated group level, which is then compared to the sum of the entities within the group. Any difference is placed into a consolidation adjustment account or element. If you use this value, you must specify the entity in which to post this adjustment using the Group Adjustment Entity field.
    Group Adjustment Entity

    This field applies only when the Calculation Type is Group Consolidation Adjustment. Specify the entity in which to post the consolidated group adjustment.
  6. Click OK to return to the list.

    Caution: Once you click Save in the next step, you cannot delete a regional group or change its functional currency.

  7. When you are finished, click Save.
  8. Continue to Assigning entities to regional groups.

Assigning entities to regional groups

Once you have added regional groups, you can assign entities to them. Each regional group must have at least one entity assigned to it.

To assign entities to a regional group

  1. In the Entities editor, click the Regional Groups tab. The Regional Groups page comes into view.
  2. Select the appropriate regional group, and then click Assign. A new row appears.
  3. For Symbol to Assign, type the name of the entity that you want to assign to the regional group, or select an entity from the drop-down list. Alternatively, you can use the symbol selector. For more information on searching for symbols, see Using the Symbol Selector.
  4. For Sort Order, specify a numeric value from 1 and up representing the order of the symbol with respect to its parent. By default, the sort order for assigned symbols is 10 higher than the last child of the same parent. If you specify a value of 0, the symbol appears at the bottom of the list.

    Note: Sort Orders specified here apply only to the entity’s position in a Regional Group and do not apply to the entity in its original location.

  5. Repeat step 2 to step 4 to assign all entities to their relevant regional groups.

    Note: You can assign the same entity to multiple regional groups.

  6. Click OK to return to the list.
  7. When you are finished, click Save. 

Removing entities from regional groups

If an entity should not longer be a member of a regional group, you can remove it.

To remove an entity from a regional group

  1. In the Tax Provision navigation pane, click Administration, and then expand Entities.
  2. Click Entities. The Entities editor opens in the workspace with the Total Entities page in view.
  3. Click the Regional Groups tab. The Regional Groups page comes into view.
  4. Select the entity to remove, and click Remove.
  5. Repeat step 4 for each entity that you want to remove.
  6. When you are finished, click Save. 

Updating regional groups

If you need to update the properties of a regional group, you can do so using the Entities editor.

For information on updating the entities that are assigned to a group, see Assigning entities to regional groups and Removing entities from regional groups.

To update a regional group

  1. In the Tax Provision navigation pane, click Administration, and then expand Entities.
  2. Click Entities. The Entities editor opens in the workspace with the Total Entities page in view.
  3. Click the Regional Groups tab. The Regional Groups page comes into view.
  4. Select the regional group to modify, and click Properties. The row becomes editable.
  5. Modify the following fields as necessary:
    Field Notes
    Name Type a name for the regional group. Regional Group names can include up to 25 alphanumeric characters and can contain underscores ( _ ) and periods ( . ).
    Description Type a description for the regional group. Regional group descriptions can be up to 100 characters.

    Group Type

    		 Specify one of the following options for the reporting group type:
    • Consolidated
    • Combined
    • World-Wide
    • Waters Edge
    • Nexus Combined
    • Nexus Consolidated
    • Separate
    • Unitary

    Currently, this field is for information purposes only and does not impact calculations.
    Calculation Type

    Specify the calculation type for the regional group from one of the following options:

    • Consolidated Income — Calculates values at the legal entity level by multiplying the group's consolidated income by an apportionment factor equal to the legal entity numerator and the group's denominator. For this calculation type, the same income is used for each entity but a different apportionment factor is applied.
    • Consolidated Apportionment — Calculates values at the legal entity level by multiplying the legal entity's income by an apportionment factor equal to the group's numerator and denominator. For this calculation type, the same apportionment factor is applied to each entity but a different income is used.
    • Rollup — Calculates the result as the sum of tax calculated for each of the legal entities within in the group.

    Group Consolidation Adjustment — Calculates tax at the consolidated group level, which is then compared to the sum of the entities within the group. Any difference is placed into a consolidation adjustment account or element. If you use this value, you must specify the entity in which to post this adjustment using the Group Adjustment Entity field.
    Group Adjustment Entity

    This field applies only when the Calculation Type is Group Consolidation Adjustment.

    Specify the entity in which to post the consolidated group adjustment.
  6. Click OK to return to the list.
  7. When you are finished, click Save

Working with countries

Depending on your system configuration and the products you have purchased, you may be able to work with countries. Countries allow you to associate a country with an entity. Currently, countries are part of Tax Provision and Global Transparency.

Adding countries

You can use the Countries.lvapp to add countries to the list of available countries. You may want to, for example, add a sub-region, or need to add a country to reflect changing political and geographical landscapes.

Caution: Once you add a country, you cannot delete it. You can only modify the description and deactivate the country, if it is no longer used.

To add countries

  1. In either the Tax Provision or Global Transparency navigation pane, click Administration.
  2. Expand Entities, and click Countries. The Countries app opens in the workspace.
  3. Click Add. A new row appears at the bottom of the list.
  4. Specify the new country name, ISO Alpha Identifiers (if applicable), description, and whether the country is active or not.
  5. When you are finished, click Submit. The new country appears in the list.

Specifying active countries

You can use the Countries.lvapp to specify active countries. When you specify a country as active, the country appears in a drop-down list in the Country column of the Entities editor.

To specify active countries

  1. In either the Tax Provision or Global Transparency navigation pane, click Administration.
  2. Expand Entities, and click Countries. The Countries app opens in the workspace.
  3. Select the Active check box for all countries you want to make active.

    Note: Alternatively, you can deactivate a country already specified as active by removing the check box from the country, and proceeding to step 4.

  4. When you are finished, click Submit.

Modifying country descriptions

You can use the Countries.lvapp to modify country descriptions. Countries have standard ISO descriptions; however, you can modify the way a country’s description appears in your system. Country descriptions appear in the Country column in the Entities editor for countries specified as active. For more information, see Specifying active countries.

To modify country descriptions

  1. In either the Tax Provision or Global Transparency navigation pane, click Administration.
  2. Expand Entities, and click Countries. The Countries app opens in the workspace.
  3. Click the country name in the Description column for the country you want to modify.
  4. Type an appropriate description for the country.
  5. Click Submit. The country description is modified.

Assigning countries

You can use the Entities editor to assign an entity to a country. If you have specified countries as active using the Countries.lvapp, those active countries are available for assignment. For more information on specifying active countries, see Specifying active countries.

To assign an entity to a country

  1. In either the Tax Provision or Global Transparency navigation pane, click Administration.
  2. Expand Entities, and click Entities. The Entities editor opens in the workspace.
  3. For the entity to which you want to assign a country, select the relevant country from the list of available countries.
  4. When you are finished, click Save. The entity is assigned to the country.

Copying entity settings

If you have just added an entity and you want the added entity to have the same settings as an existing entity, you can copy the existing entity’s settings to the newly added one.

Note: Copy Entity Settings is available for leaf entities only.

To copy an entity’s settings:

  1. In the Tax Provision navigation pane, click Administration, and then expand Entities.
  2. Click Entities. The Entities editor opens in the workspace with the Total Entities page in view.
  3. Select the entity you want to copy settings to.
  4. Click Copy Entity Settings in the page toolbar. The Copy Entity Settings dialog opens.
  5. Type the name of the entity you want to copy from, or select an entity in the drop-down list. Alternatively, you can use the symbol selector. For more information on searching for symbols, see Using the Symbol Selector.
  6. Click Copy. The entity settings are copied to the specified entity.

Updating entities

If you need to make changes to an entity, you can do so using the Entities editor. Most changes can be made on the Total Entities page, but if, for example, you want to change an owner entity’s percentage or assign a different branch elimination to a branch entity, you will need to use the appropriate page.

To update an entity

  1. In the Tax Provision or Task Management navigation pane, click Administration, and then expand Entities.
  2. Click Entities. The Entities editor opens in the workspace with the Total Entities page in view.
  3. Click the tab for the page containing the entity you want to update.
  4. Select the entity you want to update.
  5. To update an entity’s name, description, sort order, or parent, click Properties. To update an entity’s settings, proceed to step 8.
  6. Edit the following fields as necessary:
    Field Notes
    Entity Name Type a name for the entity. Entity names can be up to 31 alphanumeric characters, and can contain underscores ( _ ) and periods ( . ).
    Description Type a description for the entity. Entity descriptions can be up to 100 characters.
    Sort Order

    Specify a numeric value from 1 and up representing the order of the symbol with respect to its parent. By default, the sort order for added symbols is 10 higher than the last child of the same parent symbol.

    If you specify a value of 0, the symbol appears at the bottom of the list.
    Rollup Specify whether the entity has positive impact ( + ), negative impact ( - ) or no impact ( 0 ) on its parent. The default is +.
    Functional Currency Specify the functional currency to use for the entity.

    Parent

    		 Select a symbol for the parent symbol for the entity. Type the name, use the drop-down list, or use the symbol selector to select the parent symbol. For more information on searching for symbols see Using the Symbol Selector.
  7. Click OK.
  8. Edit the following fields as necessary:
    Field Notes
    Type

    Select one of the following:

    • Legal Entity — Use this value for regular legal entities.
    • Branch — Use this value for foreign operations that should be treated as a branch operation of a domestic entity. For more information on how Tax Provision processes branches, see Understanding branches.
    • Branch Elimination — Use a Branch Elimination to offset the net income before tax that has been automatically populated to both the legal entity and the branch entity. This entity has no tax rate because it is used only to offset the duplicate net income before tax, and is included in the BRANCHES entity hierarchy under the BRANCHELIM parent.
    Jurisdiction

    Select a jurisdiction entity. This field is mandatory.

    Note: To select a jurisdiction, you must first create jurisdiction entities. For more information see Adding jurisdiction entities.

    Legal Entity Grouping

    Select a legal entity grouping. This field is optional. Entities that are children of the same Legal Entity Grouping must have the same functional currency.

    Note: To select a legal entity grouping, you must first create legal entity groupings. For more information see Adding legal entity groupings.
    Automation Group If you want to assign the entity to an automation group, select the appropriate automation group. If you select an automation group, the entity uses the automation settings assigned to the automation group for net income before tax, book-tax differences, or current and deferred tax accounts, unless you set an entity-specific override.

    Note: To select an automation group, you must first create automation groups. For more information see Adding automation groups.
    Calculate Regional Provision Select this option to calculate a regional provision for the entity.
    Calculate National Benefit of Region Select this option to calculate the national benefit of region for the entity. This option is available only if Calculate Regional Provision is selected.
    Use Deferred Tax Scheduling Select this option to calculate deferred tax scheduling for the entity.
    Discontinued Operation Select this option to remove the entity from Continuing Operation and move it to Discontinued Operation.
    Calculate Netting Adjustment

    This field displays only if Use Deferred Tax Netting is selected in the System Settings editor.

    Select this option to use jurisdictional netting for the entity.

    For more information see Configuring system switches.
    Automate Deferred Tax Amounts

    Depending on the values set for Deferred Tax Automation - Automation Method and Deferred Tax Automation - Display Automation Settings in the System Settings editor, this field may not display.

    Select this option to automate temporary difference ending balances for the entity.

    For more information, see Configuring Deferred Tax automation settings.
    Automate Current Tax Amounts

    Depending on the values set for Current Tax Automation - Allow Automation of Current Tax and Current Tax Automation - Display Automation Settings, this field may not display.

    Select this option to automatically transfer current tax amounts for Book-Tax Differences for this entity.

    For more information, see Configuring Current Tax automation settings.
    Automate Loss Carryforward Adjustment

    This field displays only if Use Loss Carryforward Automation is selected in the System Settings editor.

    Select this option to automate the loss carryforward adjustment.

    For more information see Configuring system switches.
    TARF Actual Transfer Timeframe Select a TARF timeframe for actual periods for the entity.
    Calculate Interim Select this option to calculate an interim provision for the entity.
  9. Do one of the following:
    • If you did not select Calculate Interim, continue to step 12.
    • If you selected Calculate Interim, complete step 10 and step 11.
  10. Specify the entity settings for interim ETR, if applicable.
    Field Notes
    Entity Level for Interim ETR

    Select the interim ETR level for the entity.

    • Legal Entity — Use this value to calculate the interim ETR at the legal entity level.
    • Sub-Consolidated — Use this value to calculate the interim ETR for the entity at a sub-consolidated level. If you use this value, you must specify a sub-consolidation parent for the Sub-Consolidation Entity for Interim ETR.

    This setting is available only if the Entity Level for Interim ETR system setting is set to Defined by Entity.
    Sub-Consolidation Entity for Interim ETR

    If you selected Sub-Consolidated as the Entity Level for Interim ETR, you must specify the sub-consolidation parent symbol to use for the interim ETR calculation. If the Entity Level for Interim ETR is Legal Entity, this setting is unavailable.

    This setting is available only if the Entity Level for Interim ETR system setting is set to Sub-Consolidated or Defined by Entity.
    Include in National Current Interim ETR

    Select this option to calculate a national current interim ETR for this entity. If you choose to exclude an entity from the interim ETR calculation, the entity’s national current interim ETR is adjusted to 0.

    If the Entity Level for Interim ETR system setting is set to Legal Entity, this setting is unavailable.
    Include in National Deferred Interim ETR

    Select this option to calculate a national deferred interim ETR for this entity. If you choose to exclude an entity from the interim ETR calculation, the entity’s national deferred interim ETR is adjusted to 0.

    If the Entity Level for Interim ETR system setting is set to Legal Entity, this setting is unavailable.
    Include in Regional Current Interim ETR

    Select this option to calculate a regional current interim ETR for this entity. If you choose to exclude an entity from the interim ETR calculation, the entity’s regional current interim ETR is adjusted to 0. This setting is available only if Calculate Regional Provision is selected for the entity.

    If the Entity Level for Interim ETR system setting is set to Legal Entity, this setting is unavailable.

    Include in Regional Deferred Interim ETR

    Select this option to calculate a regional deferred interim ETR for this entity. If you choose to exclude an entity from the interim ETR calculation, the entity’s regional deferred interim ETR is adjusted to 0. This setting is available only if Calculate Regional Provision is selected for the entity.

    If the Entity Level for Interim ETR system setting is set to Legal Entity, this setting is unavailable.
  11. Specify the interim rate change type:
    Field Notes
    Interim Rate Change Type

    This setting applies to ASC systems only.

    Select one of the following:

    • Actual — Bases the interim rate change on the actuals rate change.
    • Forecast — Bases the interim rate change on the full year forecasted amount.
    • Prorate — Bases the interim rate change on the prorated forecasted amount; prorated by number of months elapsed to total months in the year.

    This field is available only if Calculate Interim is selected.
  12. Specify the TARF timeframe:
    Field Notes
    TARF Interim Transfer Timeframe

    Select a TARF timeframe for interim periods for the entity. If you selected Calculate Interim, Longview recommends that you set this value to TFINTERIM. If you did not select Calculate Interim, Longview recommends that you set this value to TFACTUALS.

Specify a numeric value from 1 and up representing the order of the symbol with respect to its parent. By default, the sort order for added symbols is 10 higher than the last child of the same parent symbol.

If you specify a value of 0, the symbol appears at the bottom of the list.

Removing entities

You cannot delete an entity from the system once it has been created; however, you may be able to remove a symbol from its parent if the symbol exists under Total Entities and within an alternate hierarchy.

To remove an entity

  1. In the Tax Provision or Task Management navigation pane, click Administration, and then expand Entities.
  2. Click Entities. The Entities editor opens in the workspace with the Total Entities page in view.
  3. Do one of the following:
    • To remove an entity from Total Entities, continue to the next step.

      Note: When you remove an entity from TENTITIES, it is also removed from Jurisdictions and Total_Operations (if it exists under these parents).

    • To remove an entity from an alternate hierarchy, click the Alternate Hierarchy tab, and continue to the next step.
    • To remove a partnership from an owner entity, click the Partnerships tab, and continue to the next step.
  4. Select the entity to remove, and click Remove.

    Note: Remove is available for an entity only if it exists in Total Entities and within an alternate hierarchy.

  5. Click Save.

Exporting entities to Microsoft Excel

You can use the Entities editor to export entity information from all tabs in the editor to Microsoft Excel.

To export entity information to Microsoft Excel

  1. In the Tax Provision or Task Management navigation pane, click Administration, and then expand Entities.
  2. Click Entities. The Entities editor opens in the workspace with the Total Entities page in view.
  3. Click Export to Excel. A dialog opens.
  4. Select one of the following:
    • To export all entity symbols fully expanded, click Expanded View.
    • To export only the entity symbols visible in the current hierarchy expansion state for each tab, click Current View.

      Note: For more information on expanding and collapsing the symbol hierarchy, see Using context menus.

  5. The Save As dialog opens.
  6. Navigate to the location where you want the file to be saved.
  7. Type the name of the file you want the entity information to be exported to.
  8. Click Save. The file opens in Microsoft Excel.

Working with period-specific settings

Longview Tax provides you with the Period-Specific Settings administration app that you can use to modify settings at the entity level for a particular time period. These settings allow you to run calculations for the specified target time period.

The Period-Specific Settings administration app contains a toolbar. Review the following table for list of possible buttons and their functionality.

Button Description
Submit Click the Submit button to submit data to the database. For more information, see Submitting data to the database.
Refresh Click the Refresh button to update all information in the current view to reflect any changes that any other users have made.
Select Reference Period Click the Select Reference Period button to select the reference period to use for this scenario.
Copy from Reference Period Click the Copy from Reference Period button to copy the Interim ETR settings from the reference period to the current working period. This button copies settings for the current tab only and not all tabs in the app.
System Settings - Interim ETR

This button applies only to the Interim ETR tab.

Click the System Settings - Interim ETR button to specify the Entity Level for Interim ETR and Consolidation/Sub-Consolidation Hierarchy for Interim ETR system settings to the current working period. For more information, see Configuring Interim settings.
Options Click the Options button to modify display options. For more information, see Specifying display options.
Print Preview Click the Print Preview button to modify print options and view a print preview. For more information, see Printing input apps.
Export to Excel

Click the Export to Excel button to export data from the app to Microsoft Excel. For more information, see Exporting input apps to Microsoft Excel.

Modifying period-specific settings

You can modify the settings at the entity level for a particular time period so that you can run calculations for the specified target time period.

To modify period-specific settings

  1. In the Tax Provision navigation pane, click Administration.
  2. Expand Entities, and click Period-Specific Settings.lvapp. One of the following occurs:
    • A dialog opens in the workspace. Proceed to step 3.
    • The app opens in the workspace with the Scheduling tab in view. Proceed to step 6.
  1. Specify the Reference Period. You can select symbols by typing the symbol name or selecting the symbol in the hierarchy. Alternatively, you can use the symbol selector.
  2. Specify the specify the Target Period. You can select symbols by typing the symbol name or selecting the symbol in the hierarchy. Alternatively, you can use the symbol selector.
  3. Click OK. The app opens in the workspace with the Scheduling tab in view.
  4. For each entity in the scenario column, specify whether Use Deferred Tax Scheduling is applicable for the entity:
    • Scheduling — Use Deferred Tax Scheduling is applicable for the entity.
    • Regular — Use Deferred Tax Scheduling is not applicable for the entity.

    Note: You can use the Copy from Reference Period button to populate the settings from the reference period to the target period.

  5. Click the Partnerships tab.
  6. For each partnership in the scenario column, complete the following fields as needed:
    • Owner — Assign an owner entity to the partnership.

      Note: You can right-click an Owner cell and select Select owner to specify the owner entity.

    • Ownership % — Specify the percentage owned by the entity For example, for 35%, type 35. Ownership percentage totals cannot exceed 100%.
  7. Click the Interim ETR tab.
  8. For each entity, complete the following fields:
    Field Notes
    Entity Level for Interim ETR

    This field applies only for entities for which the Entity Level for Interim ETR setting in the System Settings editor is set to Defined by Entity.

    Select the interim rate level for the entity.

    • Legal Entity — Use this value to calculate the interim rate at the legal entity level.
    • Sub-Consolidated — Use this value to calculate the interim rate for the entity at a sub-consolidated level. If you use this value, you must specify a sub-consolidation parent for the Sub-Consolidation Entity for Interim.
    Sub-Consolidation Entity for Interim

    This field applies only for entities for which the Entity Level for Interim ETR setting in the System Settings editor is set to Defined by Entity or Sub-Consolidated. Specify the sub-consolidation parent symbol to use for the interim rate calculation.

    Note: You can right-click a cell and select Sub-Consolidation Entity to specify sub-consolidation parent.
    Include in National Current Interim

    Select TRUE to calculate a national current interim rate for this entity in the target period. If you choose to exclude this entity from the interim calculation by selecting FALSE, the entity’s national current interim rate is adjusted to 0.

    If the Entity Level for Interim ETR system setting is set to Legal Entity, this setting does not apply.
    Include in National Deferred Interim

    Select TRUE to calculate a national deferred interim rate for this entity in the target period. If you choose to exclude this entity from the interim rate calculation by selecting FALSE, the entity’s national deferred interim rate is adjusted to 0.

    If the Entity Level for Interim ETR system setting is set to Legal Entity, this setting does not apply.
    Include in Regional Current Interim

    Select TRUE to calculate a regional current interim rate for this entity in the target period. If you choose to exclude this entity from the interim rate calculation by selecting FALSE, the entity’s regional current interim rate is adjusted to 0. 

    If the Entity Level for Interim ETR system setting is set to Legal Entity, this setting does not apply.
    Include in Regional Deferred Interim

    Select TRUE to calculate a regional deferred interim rate for this entity in the target period. If you choose to exclude this entity from the interim rate calculation by selecting FALSE, the entity’s regional deferred interim rate is adjusted to 0.

    If the Entity Level for Interim ETR system setting is set to Legal Entity, this setting does not apply.
  9. Click Submit.
Published:

Maintaining Entities

The ENTITIES dimension contains the world-wide locations in which your company conducts business. As part of the initial setup of Longview, you must add your company’s entities to the system. The entities structures are configured during implementation but also require ongoing maintenance. For example, if your company expands and opens a new office, you need to add a new entity symbol.

For more information on the ENTITIES dimension, see:

For Tax Provision, the following sections apply:

The following general sections apply to Tax Provision, Task Management and Operational Transfer Pricing:

For information on changing the default settings for the Entities editor, see Configuring system settings.

If you want to view or print the Interim and Tax Account Rollforward configuration settings of your entities, you can do so by expanding Entities and selecting the Interim and TARF Entity Setup (XCCC800) report located in the Administration category of the Tax Provision navigation pane.

Understanding entity types

The root tax entity is TENTITIES and represents the primary entities on which provision calculations run. You can also create alternate hierarchies so that you can view results under various scenarios. For more information on root symbols for alternate hierarchies, see Understanding preconfigured root symbols in the ENTITIES dimension.

In addition to legal entities, Tax Provision includes functionality that allows you to add and use branch and partnership entities as part of the overall tax provision calculation. For legal and branch entities, you can select a jurisdiction and a legal entity grouping that can be used for reporting purposes and provision calculations. For information on adding a regular entity, see Adding legal, branch, and branch elimination entities.

Longview suggests that you create and adhere to entity naming conventions specific to your company in order to easily distinguish between the different types of entities in your system.

Understanding jurisdiction entities and legal entity groupings

Jurisdiction entities are part of the entity dimension to which legal entities are assigned. Jurisdiction entities are typically countries, but your Tax Administrator can configure your jurisdiction entities to meet the specific needs of your company. Information from jurisdiction entities can be used for both informational and reporting purposes, providing an alternate rollup to legal entities using the jurisdiction setting. You must specify a jurisdiction Entity when creating or modifying a legal entity, branch, branch elimination, or legal entity grouping.

Note: Jurisdiction entities are not the same as the Jurisdictions required for Task Management, which you must create in the Details dimension.

Legal entity groupings are a subcategory of jurisdiction entities that are used to group legal and branch entities for certain automation processes such as net operating loss automation and deferred tax netting. Legal entity groupings can also be used for reporting purposes, similar to jurisdictions. Legal entity groupings are required only if your company is using certain automation processes such as loss automation and deferred tax netting, or if your company wants to further refine jurisdiction settings.

Jurisdiction entities and legal entity groupings are organized in Tax Provision as follows:

  • All jurisdiction entities are organized under a jurisdiction hierarchy, Jurisdictions, within the ENTITIES dimension.
  • All legal entity groupings are also organized as subcategories in the Jurisdictions hierarchy.

For more information on adding a jurisdiction entity, see Adding jurisdiction entities. For more information on adding a legal entity grouping, see Adding legal entity groupings.

Understanding automation groups

Tax Provision provides automation groups as a way to simplify maintenance for entities that use the same, or similar, automation settings for net income before tax, book-tax differences, or current and deferred tax accounts.

When you are working in the Net Income Before Tax, Book-Tax Differences, or Current and Deferred Tax editors, you can override the default account automation settings for an automation group or for a specific entity. Any automation group overrides apply to all entities that are included in that automation group. If an entity should use similar, but not the same settings as the other members of an automation group, you can subsequently use entity-specific overrides to adjust the account automation settings.

Understanding Total Operations

The Total_Operations hierarchy groups entities under one of two parent symbols: Continuing Operations or Discontinued Operations. The Total_Operations hierarchy allows you to view all entities from the TENTITIES hierarchy by continued or discontinued operation status. The Total_Operations hierarchy allows for the loading and input of data for each entity regardless of operation status, but then allows users to view the results of Continuing Operations and Discontinued Operations separately. The Total_Operations hierarchy also increases ease of use for creating the income tax footnote if your company has any discontinued operations. The Longview default for added entities is Continuing Operations. For more information see Discontinued Operation.

Understanding partnerships and owners

Partnerships can be separate entities within Tax Provision where a percentage of the total provision details are allocated to individual corporate owner leaf entities. A corporate owner entity is generally treated as a child of the true corporate owner so that the corporate owner is comprised of the following entities:

  • An entity representing the operations of the corporate owner entity. This entity is treated as a regular entity.
  • An entity holding the corporate owner entity’s share of the partnership’s tax attributes, which flows into the corporate owner entity automatically based on the assigned percentage.

Tax Provision is configured to capture and reflect 100% of the partnership trial balances, activity, and related tax attributes, which are automatically allocated to corporate owners in accordance with their partnership interests.

Partnerships are set up in Tax Provision as follows:

  • All partnerships are organized under the PShip hierarchy.
  • The entities within the PShip entity hierarchy are used to track the tax attributes of the partnership on both a current and gross temporary difference basis. Since the partnerships are not taxed themselves but are taxed at the corporate owner level on their allocable share of the income, no tax is calculated on these entities.
  • The allocable share of the partnership’s tax attributes is allocated to the respective corporate owners for all current provision items as well as the gross temporary differences of the partnership entity.
  • The Partnership Master Information (XCCC303) report is available to reflect the corporate owners and their ownership percentages, and any changes to these percentages.

For information on adding a partnership entity, see Adding partnership entities. For more information on assigning an owner entity, see Assigning owner entities.

Understanding branches

Tax Provision handles branches by taking into consideration the fact that branches have income taxed in multiple jurisdictions: both the country of incorporation or organization, and the country in which the branch is doing business.

For example, a US entity has a branch in France. Based on this, the company owes tax in the US as the entity is incorporated in the US, and the company owes tax in France as it is doing business in France. In this situation, the company owes tax to two different countries based on the same income.

To account for these circumstances, three entities are required by the Tax Provision system:

  1. A legal entity, which reports its taxable income and related tax based on the rules of its country of incorporation or organization. This entity is included in the TENTITIES hierarchy.
  2. A branch entity, which reports its taxable income and related tax based on the rules of the country in which it is doing business. This entity is created in the TENTITIES hierarchy and is automatically assigned to the BRANCHES entity hierarchy when it is defined as a branch.

    The Branch Income Transfer process copies the net income before tax of the legal entity to both the legal entity and branch entity. This process allows for both entities to record the tax based on the rules of the country to which tax is owed.

  3. An elimination entity is needed to offset the net income before tax that has been automatically populated to both the legal entity and the branch entity. As part of the Branch Income Transfer process, the inverse of the pre-tax income is copied into the elimination entity to ensure there is no impact on the consolidated net income before tax. This entity has no tax rate, because it is used only to offset the duplicate net income before tax. This entity is created in the TENTITIES hierarchy and is automatically assigned to the BRANCHES entity hierarchy under the BRANCHELIM parent when it is defined as a branch.

    While the elimination entity is used to eliminate the double counting of the entity’s pre-tax income for consolidation purposes, a foreign tax credit is used to offset the double taxation resulting from the two separate tax provisions on the same income. The foreign tax credit has both automated and manual portions. The automated portion is reflected in the legal entity and represents the inverse of the tax calculated at the branch entity. This provides a starting point for the available foreign tax credit which can be adjusted using the manual input account.

Note: Branch Foreign Tax Credit automation is available only for ASC systems.

For information on adding a branch or a branch elimination, see Adding legal, branch, and branch elimination entities.

Understanding pre-configured root symbols in the ENTITIES dimension

The following table lists preconfigured root symbols in the ENTITIES dimension:

Root symbol Product Description
TENTITIES Tax Provision This symbol is used for the tax provision process. All legal, branch, and branch elimination entities must be assigned to this root to be included in the tax provision process.
Jurisdictions Tax Provision

This symbol contains jurisdiction entities and legal entity groupings. Information from jurisdiction entities can be used for both informational and reporting purposes, providing an alternate rollup to legal entities.

Legal entity groupings are a subcategory of jurisdiction entities that are used to group legal and branch entities for certain automation processes, such as net operation loss automation and deferred tax netting. Legal entity groupings can also be used for reporting purposes, similar to jurisdiction entities.
Automation_Groups Tax Provision This symbol contains the automation groups created for your system. Automation groups consist of entities that use the same, or very similar, automation settings for net income before tax, book-tax differences, or current and deferred tax accounts. For more information, see Adding automation groups.
Total_Operations Tax Provision The symbol groups entities under one of two parent symbols: Continuing Operations or Discontinued Operations and allows you to view all entities from the TENTITIES hierarchy by continued or discontinued operation status.
PShip Tax Provision This symbol contains all the partnership entities for the system. The entities within the PShip hierarchy are used to track the tax attributes of the partnership on both a current and gross temporary difference basis. Since the partnerships are not taxed themselves but are taxed at the corporate owner level on their allocable share of the income, no tax is calculated on these entities.
BRANCHES Tax Provision This symbol contains all the branch and branch elimination entities for the system. This system allows for a branch to record the tax based on the rules of the country to which tax is owed.
ENTITIESHIER1 Tax Provision and Task Management

These symbols are for any alternate hierarchies, including entities used for Task Management.

For Tax Provision, your company can use these alternate hierarchies to calculate interim effective tax rates at a sub-consolidated level, or to provide alternate reporting structures for custom reports.

You should not select any of these symbols in calculation configuration settings. Create a parent symbol under these roots and use this new symbol for any calculation configuration settings.

Longview also recommends that you grant access at the group level to the parent symbols you create under these roots, and never grant group access to the roots themselves.
ENTITIESHIER2
ENTITIESHIER3
ENTITIESHIER4
ENTITIESHIER5

Adding jurisdiction entities

Jurisdiction entities are typically countries, but you can configure your jurisdiction entities to meet the specific needs of your company. Because you must select an jurisdiction entity when creating other entity types, such as legal entities or branches, you may want to create the required jurisdiction entities first.

Note: Jurisdiction entities are not the same as the Jurisdictions required for Task Management, which are created in the Details dimension. For information on these jurisdictions, see “Maintaining Task Management jurisdictions”.

To add a jurisdiction entity

  1. In the Tax Provision navigation pane, click Administration.
  2. Expand Entities, and then click Entities. The Entities editor opens in the workspace with the Total Entities page in view.
  3. Click the Jurisdictions and Legal Entity Groupings tab. The Jurisdictions page comes into view.
  4. Select the Jurisdictions row.
  5. Click Jurisdiction.
  6. Complete the following fields:
    Field Notes
    Entity Name Type a name for the entity jurisdiction. Entity names can contain up to 31 alphanumeric characters, and can contain underscores ( _ ) and periods ( . ).
    Description Type a description for the entity jurisdiction. Entity descriptions can be up to 100 characters.
    Sort Order

    Specify a numeric value from 1 and up representing the order of the symbol with respect to its parent. By default, the sort order for added symbols is 10 higher than the last child of the same parent symbol.

    If you specify a value of 0, the symbol appears at the bottom of the list.
    Rollup Specify whether the entity has positive impact ( + ), negative impact ( - ) or no impact ( 0 ) on its parent. The default is +.
    Functional Currency Specify the functional currency to use for the entity. Entities that are children of the same Legal Entity Grouping must have the same functional currency.
  7. Click OK. The entity is added to the Jurisdictions hierarchy.
  8. Click Save.

Adding legal entity groupings

Legal entity groupings are a subcategory of jurisdiction entities that are used to group legal and branch entities for certain automation processes such as net operation loss automation and deferred tax netting.

Note: All members of a Legal Entity Grouping must have the same functional currency.

To add a legal entity grouping

  1. In the Tax Provision navigation pane, click Administration.
  2. Expand Entities, and then click Entities. The Entities editor opens in the workspace with the Total Entities page in view.
  3. Click the Jurisdictions and Legal Entity Groupings tab.
  4. Select the appropriate parent for the entity, and then click Legal Entity Grouping. A new row appears.
  5. Complete the following fields:
    Field Notes
    Entity Name Type a name for the legal entity grouping. Entity names can contain up to 31 alphanumeric characters, and can contain underscores ( _ ) and periods ( . ).
    Description Type a description for the legal entity grouping. Entity descriptions can be up to 100 characters.
    Sort Order

    Specify a numeric value from 1 and up representing the order of the symbol with respect to its parent. By default, the sort order for added symbols is 10 higher than the last child of the same parent symbol. If you specify a value of 0, the symbol appears at the bottom of the list.
    Rollup Specify whether the entity has positive impact ( + ), negative impact ( - ) or no impact ( 0 ) on its parent. The default is +.
    Functional Currency Specify the functional currency to use for the entity. Entities that are children of the same Legal Entity Grouping must have the same functional currency.
    Calculate Netting Adjustment

    This field displays only if Use Deferred Tax Netting is selected in the System Settings editor. Select this option to use jurisdictional netting for the entity.

    For more information, see Configuring system switches.
    Loss Position

    This field displays only if Use Loss Carryforward Automation is selected in the System Settings editor. Select this option if the legal entity grouping is in a loss position.

    For more information, see Configuring system switches.
    Parent Select a jurisdiction symbol for the parent symbol for the entity. Type the name, use the drop-down list, or use the symbol selector to select the Parent symbol. For more information on searching for symbols, see Using the Symbol Selector.
  6. Click OK. The entity is added to the Jurisdictions hierarchy.
  7. Click Save.

Adding automation groups

If your company has entities that use the same, or very similar, automation settings for net income before tax, book-tax differences, or current and deferred tax accounts, you can organize these entities in automation groups to simplify maintenance.

Once you have created an automation group, you can use the Total Entities or Partnerships page to assign the relevant entities to the group. For more information, see Adding legal, branch, and branch elimination entities and Adding partnership entities.

When you are working in the Net Income Before Tax, Book-Tax Differences, or Current and Deferred Tax editors, you can override the default account automation settings for an automation group or for a specific entity. Any automation group overrides apply to all entities that are included in that automation group. If an entity should use similar, but not the same settings as the other members of an automation group, you can subsequently use entity-specific overrides to adjust the account automation settings.

For more information, see the following sections:

  • Overriding NIBT account default settings for an entity or automation group
  • Overriding book-tax difference settings for an entity or automation group
  • Overriding deferred tax default settings for an entity or automation group

To add an automation group

  1. In the Tax Provision navigation pane, click Administration.
  2. Expand Entities, and then click Entities. The Entities editor opens in the workspace with the Total Entities page in view.
  3. Click the Automation Groups tab. The Automation Groups page comes into view.
  4. Select the Automation_Groups root symbol, and then click Automation Group. A new row appears.
  5. Complete the following fields:
    Field Notes
    Name Type a name for the automation group. Automation group names can contain up to 31 alphanumeric characters, and can contain underscores ( _ ) and periods ( . ).
    Description Type a description for the automation group. Automation group descriptions can be up to 100 characters.
    Sort Order

    Specify a numeric value from 1 and up representing the order of the symbol with respect to its parent. By default, the sort order for added symbols is 10 higher than the last child of the same parent symbol.

    If you specify a value of 0, the symbol appears at the bottom of the list.
  6. When you are finished, click OK. The new automation group appears in the list.
  7. Click Save.

Adding legal, branch, and branch elimination entities

You can add a legal, branch, or branch elimination entity to your Tax Provision system using the Entities editor. For more information on entity types, see Understanding entity types.

To add a legal, branch, or branch elimination entity

  1. In the Tax Provision navigation pane, click Administration.
  2. Expand Entities, and then click Entities. The Entities editor opens in the workspace with the Total Entities page in view.
  3. Select the appropriate parent for the entity, and then click Entity. A new row appears.
  4. Complete the following fields:
    Field Notes
    Entity Name Type a name for the entity. Entity names can be up to 31 alphanumeric characters, and can contain underscores ( _ ) and periods ( . ).
    Description Type a description for the entity. Entity descriptions can be up to 100 characters.
    Sort Order

    Specify a numeric value from 1 and up representing the order of the symbol with respect to its parent. By default, the sort order for added symbols is 10 higher than the last child of the same parent symbol.

    If you specify a value of 0, the symbol appears at the bottom of the list.
    Rollup Specify whether the entity has positive impact ( + ), negative impact ( - ) or no impact ( 0 ) on its parent. The default is +.
    Functional Currency Specify the functional currency to use for the entity.
    Parent Select a parent symbol for the entity. Type the name of an entity, use the drop-down list, or use the symbol selector to select the parent symbol. For more information on searching for symbols see Using the Symbol Selector.

    Caution: If you select a leaf symbol, that leaf will become a parent and, consequently, its data and settings are lost.
  5. If you are adding a parent entity, proceed to step 9. If you are adding a leaf entity, complete the following fields.
    Field Notes

    Type

    		 Select one of the following:
    • Legal Entity — Use this value for regular legal entities.
    • Branch — Use this value for foreign operations that should be treated as a branch operation of a domestic entity. For more information on how Tax Provision processes branches, see Understanding branches.
    • Branch Elimination — Use a Branch Elimination to offset the net income before tax that has been automatically populated to both the legal entity and the branch entity. This entity has no tax rate because it is used only to offset the duplicate net income before tax, and is included in the BRANCHES entity hierarchy under the BRANCHELIM parent.
    Country

    This field displays only if you have specified active countries. For more information, see Specifying active countries.

    Select a country to assign the entity to. This field is optional and applies to country by country reporting.
    Jurisdiction Select a jurisdiction entity. This field is mandatory.

    Note: To select a jurisdiction, you must first create jurisdiction entities. For more information see Adding jurisdiction entities.
    Legal Entity Grouping Select a legal entity grouping. This field is optional. Entities that are children of the same Legal Entity Grouping must have the same functional currency.

    Note: To select a legal entity grouping, you must first create legal entity groupings. For more information see Adding legal entity groupings.
    Automation Group If you want to assign the entity to an automation group, select the appropriate automation group. If you select an automation group, the entity uses the automation settings assigned to the automation group for net income before tax, book-tax differences, or current and deferred tax accounts, unless you set an entity-specific override.

    Note: To select an automation group, you must first create automation groups. For more information see Adding automation groups.
    Calculation Level

    This setting applies only if Use Entity Calculation Level is selected in the System Settings editor.

    Select this setting if you want this entity to act as the calculation level for deferred tax classification, netting, and valuation allowances for all leaf entities below it. This setting applies only to parent entities

    If you do not specify a calculation level, deferred tax classification, netting, and valuation allowances are calculated at the legal entity level.

    By default, this setting is cleared.
    Calculate Regional Provision Select this option to calculate a regional provision for the entity.
    Calculate National Benefit of Region Select this option to calculate the national benefit of region for the entity. This option is available only if Calculate Regional Provision is selected.
    Use Deferred Tax Scheduling Select this option to calculate deferred tax scheduling for the entity.
    Discontinued Operation Select this option to remove the entity from Continuing Operation and move it to Discontinued Operation.
    Calculate Netting Adjustment

    This field displays only if Use Deferred Tax Netting is selected in the System Settings editor. Select this option to use jurisdictional netting for the entity.

    For more information see Configuring system switches.
    Automate Deferred Tax Amounts

    Depending on the values set for Deferred Tax Automation - Automation Method and Deferred Tax Automation - Display Automation Settings in the System Settings editor, this field may not display. Select this option to automate temporary difference ending balances for the entity.

    For more information, see Configuring Deferred Tax automation settings.
    Automate Current Tax Amounts

    Depending on the values set for Current Tax Automation - Allow Automation of Current Tax and Current Tax Automation - Display Automation Settings, this field may not display. Select this option to automatically transfer current tax amounts for Book-Tax Differences for this entity.

    For more information, see Configuring Current Tax automation settings.
    Automate Loss Carryforward Adjustment

    This field displays only if Use Loss Carryforward Automation is selected in the System Settings editor. Select this option to automate the loss carryforward adjustment.

    For more information see Configuring system switches.
    TARF Actual Transfer Timeframe Select a TARF timeframe for actual periods for the entity.
    Calculate Interim Select this option to calculate an interim provision for the entity.
  6. Do one of the following:
    • If you selected Calculate Interim, complete step 7 and step 8.
    • If you did not select Calculate Interim, continue to step 9.
  7. Specify the entity settings for interim ETR, if applicable.
    Field Notes
    Entity Level for Interim ETR

    Select the interim ETR level for the entity.

    • Legal Entity — Use this value to calculate the interim ETR at the legal entity level.
    • Sub-Consolidated — Use this value to calculate the interim ETR for the entity at a sub-consolidated level. If you use this value, you must specify a sub-consolidation parent for the Sub-Consolidation Entity for Interim ETR.

    This setting is available only if the Entity Level for Interim ETR system setting is set to Defined by Entity.
    Sub-Consolidation Entity for Interim ETR

    If you selected Sub-Consolidated as the Entity Level for Interim ETR, you must specify the sub-consolidation parent symbol to use for the interim ETR calculation.

    If the Entity Level for Interim ETR is Legal Entity, this setting is unavailable.

    This setting is available only if the Entity Level for Interim ETR system setting is set to Sub-Consolidated or Defined by Entity.
    Include in National Current Interim ETR

    Select this option to calculate a national current interim ETR for this entity. If you choose to exclude an entity from the interim ETR calculation, the entity’s national current interim ETR is adjusted to 0.

    If the Entity Level for Interim ETR system setting is Legal Entity, this setting is unavailable.
    Include in National Deferred Interim ETR

    Select this option to calculate a national deferred interim ETR for this entity. If you choose to exclude an entity from the interim ETR calculation, the entity’s national deferred interim ETR is adjusted to 0.

    If the Entity Level for Interim ETR system setting is Legal Entity, this setting is unavailable.
    Include in Regional Current Interim ETR

    Select this option to calculate a regional current interim ETR for this entity. If you choose to exclude an entity from the interim ETR calculation, the entity’s regional current interim ETR is adjusted to 0.

    This setting is available only if Calculate Regional Provision is selected for the entity.

    If the Entity Level for Interim ETR system setting is Legal Entity, this setting is unavailable.
    Include in Regional Deferred Interim ETR

    Select this option to calculate a regional deferred interim ETR for this entity. If you choose to exclude an entity from the interim ETR calculation, the entity’s regional deferred interim ETR is adjusted to 0.

    This setting is available only if Calculate Regional Provision is selected for the entity.

    If the Entity Level for Interim ETR system setting is Legal Entity, this setting is unavailable.
  8. Specify the interim rate change type:
    Field Notes
    Interim Rate Change Type

    This setting applies to ASC systems only.

    Select one of the following:

    • Actual — Bases the interim rate change on the actuals rate change.
    • Forecast — Bases the interim rate change on the full year forecasted amount.
    • Prorate — Bases the interim rate change on the prorated forecasted amount; prorated by number of months elapsed to total months in the year.

    This field is available only if Calculate Interim is selected.
  9. Specify the TARF timeframe:
    Field Notes
    TARF Interim Transfer Timeframe

    Select a TARF timeframe for interim periods for the entity. If you selected Calculate Interim, Longview recommends that you set this value to TFINTERIM. If you did not select Calculate Interim, Longview recommends that you set this value to TFACTUALS.
  10. Click OK. If you added a legal entity, the entity is added to the TENTITIES hierarchy. If you added a branch or a branch elimination, the entity is added to both the TENTITIES and BRANCHES hierarchies.
  11. Do one of the following:
    • If you added a Branch, continue to the next step.
    • If you added a Legal Entity or a Branch Elimination, continue to step 15.
  12. Click the Branches tab. The Branches page comes into view.
  13. Select the branch entity you just added.
  14. Double-click the following fields and edit them as necessary:
    Field Notes
    Legal Entity Select a symbol for the associated branch entity. Type the name of an entity, use the drop-down list, or use the symbol selector to select the legal entity symbol. For more information on searching for symbols, see Using the Symbol Selector.
    Branch Elimination Select a symbol for the associated elimination entity. Type the name of an entity, use the drop-down list, or use the symbol selector to select the branch elimination symbol. For more information on searching for symbols, see Using the Symbol Selector.
  15. Click Save.

Assigning entities from alternate hierarchies to Total Entities

In some cases, you may want to include an entity that you created in an alternate hierarchy in Total Entities. You can do this by assigning the symbol from the alternate hierarchy to TENTITIES.

Note: When you assign a symbol to Total Entities, the symbol remains unaffected in its original location.

To assign an entity to Total Entities

  1. In the Tax Provision navigation pane, click Administration.
  2. Expand Entities, and then click Entities. The Entities editor opens in the workspace with the Total Entities page in view.
  3. Select the appropriate parent, and then click Assign. A new row appears.
  4. For Symbol to Assign, type the name of the alternate hierarchy entity that you want to assign to Total Entities, or select an entity from one of the alternate hierarchies in the drop-down list. Alternatively, you can use the symbol selector. For more information on searching for symbols, see Using the Symbol Selector.
  5. For Parent, type the name of the desired parent symbol, or select an entity in the drop-down list. Alternatively, you can use the symbol selector. For more information on searching for symbols, see Using the Symbol Selector. By default, the Parent symbol is populated with the symbol that you selected in step 3.

    Caution: If you select a leaf symbol, that leaf will become a parent and, consequently, its data and settings are lost.

  6. Modify the following fields as necessary

    Note: By default, these fields inherit the values from the selected entity.

    Field Notes
    Type

    Select one of the following:

    • Legal Entity — Use this value for regular legal entities.
    • Branch — Use this value for foreign operations that should be treated as a branch operation of a domestic entity. For more information on how Tax Provision processes branches, see Understanding branches.
    • Branch Elimination — Use a Branch Elimination to offset the net income before tax that has been automatically populated to both the legal entity and the branch entity. This entity has no tax rate because it is used only to offset the duplicate net income before tax, and is included in the BRANCHES entity hierarchy under the BRANCHELIM parent.
    Jurisdiction Select a jurisdiction entity. This field is mandatory.

    Note: To select a jurisdiction, you must first create jurisdiction entities. For more information see Adding jurisdiction entities.
    Legal Entity Grouping Select a legal entity grouping. This field is optional. Entities that are children of the same Legal Entity Grouping must have the same functional currency.

    Note: To select a legal entity grouping, you must first create legal entity groupings. For more information see Adding legal entity groupings.
    Automation Group If you want to assign the entity to an automation group, select the appropriate automation group. If you select an automation group, the entity uses the automation settings assigned to the automation group for net income before tax, book-tax differences, or current and deferred tax accounts, unless you set an entity-specific override.

    Note: To select an automation group, you must first create automation groups. For more information see Adding automation groups.
    Calculate Regional Provision Select this option to calculate a regional provision for the entity.
    Calculate National Benefit of Region Select this option to calculate the national benefit of region for the entity. This option is available only if Calculate Regional Provision is selected.
    Use Deferred Tax Scheduling Select this option to calculate deferred tax scheduling for the entity.
    Discontinued Operation Select this option to remove the entity from Continuing Operation and move it to Discontinued Operation.
    Calculate Netting Adjustment

    This field displays only if Use Deferred Tax Netting is selected in the System Settings editor. Select this option to use jurisdictional netting for the entity.

    For more information see Configuring system switches.
    Automate Deferred Tax Amounts

    Depending on the values set for Deferred Tax Automation - Automation Method and Deferred Tax Automation - Display Automation Settings in the System Settings editor, this field may not display. Select this option to automate temporary difference ending balances for the entity.

    For more information, see Configuring Deferred Tax automation settings.
    Automate Current Tax Amounts

    Depending on the values set for Current Tax Automation - Allow Automation of Current Tax and Current Tax Automation - Display Automation Settings, this field may not display.

    Select this option to automatically transfer current tax amounts for Book-Tax Differences for this entity.

    For more information, see Configuring Current Tax automation settings.
    Automate Loss Carryforward Adjustment

    This field displays only if Use Loss Carryforward Automation is selected in the System Settings editor. Select this option to automate the loss carryforward adjustment.

    For more information see Configuring system switches.
    TARF Actual Transfer Timeframe Select a TARF timeframe for actual periods for the entity.
    Calculate Interim Select this option to calculate an interim provision for the entity.
  7. Do one of the following:
    • If you selected Calculate Interim, complete step 8 and step 9.
    • If you did not select Calculate Interim, continue to step 10.
  8. Specify the entity settings for interim ETR, if applicable.
    Field Notes
    Entity Level for Interim ETR

    Select the interim ETR level for the entity.

    • Legal Entity — Use this value to calculate the interim ETR at the legal entity level.
    • Sub-Consolidated — Use this value to calculate the interim ETR for the entity at a sub-consolidated level. If you use this value, you must specify a sub-consolidation parent for the Sub-Consolidation Entity for Interim ETR.

    This setting is available only if the Entity Level for Interim ETR system setting is set to Defined by Entity.
    Sub-Consolidation Entity for Interim ETR

    If you selected Sub-Consolidated as the Entity Level for Interim ETR, you must specify the sub-consolidation parent symbol to use for the interim ETR calculation. If the Entity Level for Interim ETR is Legal Entity, this setting is unavailable.

    This setting is available only if the Entity Level for Interim ETR system setting is set to Sub-Consolidated or Defined by Entity.
    Include in National Current Interim ETR Select this option to calculate a national current interim ETR for this entity. If you choose to exclude an entity from the interim ETR calculation, the entity’s national current interim ETR is adjusted to 0. If the Entity Level for Interim ETR is Legal Entity, this setting is unavailable.
    Include in National Deferred Interim ETR

    Select this option to calculate a national deferred interim ETR for this entity. If you choose to exclude an entity from the interim ETR calculation, the entity’s national deferred interim ETR is adjusted to 0.

    If the Entity Level for Interim ETR is Legal Entity, this setting is unavailable.
    Include in Regional Current Interim ETR

    Select this option to calculate a regional current interim ETR for this entity. If you choose to exclude an entity from the interim ETR calculation, the entity’s regional current interim ETR is adjusted to 0. This setting is available only if Calculate Regional Provision is selected for the entity.

    If the Entity Level for Interim ETR is Legal Entity, this setting is unavailable.
    Include in Regional Deferred Interim ETR

    Select this option to calculate a regional deferred interim ETR for this entity. If you choose to exclude an entity from the interim ETR calculation, the entity’s regional deferred interim ETR is adjusted to 0.

    This setting is available only if Calculate Regional Provision is selected for the entity. If the Entity Level for Interim ETR is Legal Entity, this setting is unavailable.
  9. Specify the interim rate change type:
    Field Notes
    Interim Rate Change Type

    This setting applies to ASC systems only.

    Select one of the following:

    • Actual — Bases the interim rate change on the actuals rate change.
    • Forecast — Bases the interim rate change on the full year forecasted amount.
    • Prorate — Bases the interim rate change on the prorated forecasted amount; prorated by number of months elapsed to total months in the year.

    This field is available only if Calculate Interim is selected.
  10. Specify the TARF timeframe:
    Field Notes
    TARF Interim Transfer Timeframe

    Select a TARF timeframe for interim periods for the entity. If you selected Calculate Interim, Longview recommends that you set this value to TFINTERIM. If you did not select Calculate Interim, Longview recommends that you set this value to TFACTUALS.
  11. Click OK. If you added a legal entity, the entity is added to the TENTITIES hierarchy. If you added a branch or a branch elimination, the entity is added to both the TENTITIES and BRANCHES hierarchies.
  12. Do one of the following:
    • If you assigned a Branch, continue to the next step.
    • If you assigned a Legal Entity or a Branch Elimination, continue to step 15.
  13. Click the Branches tab. The Branch page comes into view.
  14. Select the branch entity you just assigned.
  15. Double-click the following fields and edit them as necessary:
    Field Notes
    Legal Entity Select a symbol for the associated branch entity. Type the name of an entity, use the drop-down list, or use the symbol selector to select the legal entity symbol. For more information on searching for symbols, see Using the Symbol Selector.
    Branch Elimination Select a symbol for the associated elimination entity. Type the name of an entity, use the drop-down list, or use the symbol selector to select the branch elimination symbol. For more information on searching for symbols, see Using the Symbol Selector.
  16. Click Save.

Adding partnership entities

Partnerships can be separate entities within Tax Provision where a percentage of the total provision details are allocated to individual corporate owner leaf entities. For more information on how Tax Provision processes partnerships, see Understanding partnerships and owners.

If you want to view or print all partnership information, you can do so by selecting the Partnership Master Information (XCCC303) report located under Entities in the Administration category of Tax Provision.

For information on partnership owners, see Assigning owner entities.

To add a partnership entity

  1. In the Tax Provision navigation pane, click Administration.
  2. Expand Entities, and then click Entities. The Entities editor opens in the workspace with the Total Entities page in view.
  3. Click the Partnership tab. The PShip page comes into view.
  4. Select the appropriate parent and then click Partnership. A new row appears.
  5. Complete the following fields:
    Field Notes
    Entity Name Type a name for the partnership entity. Entity names can contain up to 31 alphanumeric characters, and can contain underscores ( _ ) and periods ( . ).
    Description Type a description for the entity. Entity descriptions can be up to 100 characters.
    Sort Order

    Specify a numeric value from 1 and up representing the order of the symbol with respect to its parent. By default, the sort order for added symbols is 10 higher than the last child of the same parent symbol. If you specify a value of 0, the symbol appears at the bottom of the list.
    Functional Currency Specify the functional currency to use for the entity.
    Automation Group If you want to assign the entity to an automation group, select the appropriate automation group. If you select an automation group, the entity uses the automation settings assigned to the automation group for net income before tax, book-tax differences, or current and deferred tax accounts, unless you set an entity-specific override.

    Note: To select an automation group, you must first create automation groups. For more information see Adding automation groups.
    Use Deferred Tax Scheduling Select this option to calculate deferred tax scheduling for the entity.
    Automate Deferred Tax Amounts

    Depending on the values set for Deferred Tax Automation - Automation Method and Deferred Tax Automation - Display Automation Settings in the System Settings editor, this field may not display. Select this option to automate temporary difference ending balances for the entity.

    For more information, see Configuring Deferred Tax automation settings.
    Automate Current Tax Amounts

    Depending on the values set for Current Tax Automation - Allow Automation of Current Tax and Current Tax Automation - Display Automation Settings, this field may not display. Select this option to automatically transfer current tax amounts for Book-Tax Differences for this entity.

    For more information, see "Configuring Current Tax automation settings.
    Automate Loss Carryforward Adjustment

    This field displays only if Use Loss Carryforward Automation is selected in the System Settings editor. Select this option to automate the loss carryforward adjustment.

    For more information see Configuring system switches.
    Calculate Interim Select this option to calculate an interim provision for the entity.
  6. Click OK. The entity is added to the PShip hierarchy.
  7. Click Save. 

Assigning owner entities

Partnerships can be separate entities within Tax Provision where a percentage of the total provision details are allocated to individual corporate owner leaf entities.

To assign an owner entity

  1. In the Tax Provision navigation pane, click Administration.
  2. Expand Entities, and then click Entities. The Entities editor opens in the workspace with the Total Entities page in view.
  3. Add the appropriate legal entity. For more information, see Adding legal, branch, and branch elimination entities.
  4. Click the Partnerships tab. The Partnerships page comes into view.
  5. Select the appropriate partnership for which to assign the owner entity.
  6. Click Owner. A new row appears.
  7. Complete the following fields:
    Field Notes
    Owner Select the entity you just added. Type the name, use the drop-down list, or use the symbol selector to select the entity. For more information on searching for symbols, see Using the Symbol Selector. A partnership can have a maximum of 20 assigned owners.
    Partnership Select the Partnership parent entity for the new owner. Type the name, use the drop-down list, or use the symbol selector to select the entity. For more information on searching for symbols, see Using the Symbol Selector.
    Ownership Specify the percentage owned by this entity. For example, for 35%, type 35. Ownership percentage totals cannot exceed 100%.
  8. Click OK. The owner entity is assigned to the partnership.

    Note: At any time you can remove an Owner entity from a Partnership by selecting the entity and clicking Remove.

  9. Click Save.
  10. Open the Users or User Groups editor and grant read access to the owner entity.

    Caution: If an owner entity is set to write access, and a user is accessing a related input app while the calculation is running, a lock conflict occurs.

Adding alternate hierarchy entities

For Tax Provision, your company can use alternate hierarchies in the ENTITIES dimension to calculate interim effective tax rates at a sub-consolidated level or to provide alternate reporting structures for custom reports.

For Task Management, your company can use alternate hierarchies in the ENTITIES dimension to hold the entities used in the Task Administration and Tasks apps.

Longview provides the following preconfigured root symbols for your alternate entity hierarchies:

  • ENTITIESHIER1
  • ENTITIESHIER2
  • ENTITIESHIER3
  • ENTITIESHIER4
  • ENTITIESHIER5

You should not select any of these symbols in calculation configuration settings. Create a parent symbol under these roots and use this new symbol for any calculation configuration settings.

Longview also recommends that you grant access at the user or user group level to the parent symbols you create under these roots, and never grant user or user group access to the roots themselves.

If the entity you want to add to an alternate hierarchy already exists in TENTITIES or another alternate hierarchy, you can assign it to an alternate hierarchy without recreating it. For more information, see Assigning entities to alternate hierarchies.

To add an entity to an alternate hierarchy

  1. In the Tax Provision or Task Management navigation pane, click Administration, and then expand Entities.
  2. Click Entities. The Entities editor opens in the workspace with the Total Entities page in view.
  3. Click the Alternate Hierarchies tab. The Alternate Hierarchies page comes into view.
  4. Select the appropriate parent, and then click Entity. A new row appears.
  5. Complete the following fields:
    Field Notes
    Entity Name Type a name for the entity. Entity names can be up to 31 alphanumeric characters, and can contain underscores ( _ ) and periods ( . ).
    Description Type a description for the entity. Entity descriptions can be up to 100 characters.
    Sort Order

    Specify a numeric value from 1 and up representing the order of the symbol with respect to its parent. By default, the sort order for added symbols is 10 higher than the last child of the same parent symbol. If you specify a value of 0, the symbol appears at the bottom of the list.
    Rollup Specify whether the entity has positive impact ( + ), negative impact ( - ) or no impact ( 0 ) on its parent. The default is +.
    Functional Currency Specify the functional currency to use for the entity.
    Parent

    Select a parent symbol for the entity. Type the name of an entity, use the drop-down list, or use the symbol selector to select the parent symbol. You can select a parent symbol from any symbol in Alternate Entities (EntitiesHier1 — 5).

    For more information on searching for symbols see Using the Symbol Selector.
  6. Click OK. The entity appears in the selected hierarchy.
  7. Click Save. 

Assigning entities to alternate hierarchies

In some cases, you may want to build an alternate hierarchy from pre-existing symbols in the Total Entities hierarchy, or in another alternate hierarchy. You can do this by assigning the symbol from TENTITIES, or the alternate hierarchy, to the appropriate alternate hierarchy.

Note: When you assign a symbol to an alternate hierarchy, the symbol remains unaffected in its original location.

To assign an entity to an alternate hierarchy

  1. In the Tax Provision or Task Management navigation pane, click Administration, and then expand Entities.
  2. Expand Entities, and then click Entities. The Entities editor opens in the workspace with the Total Entities page in view.
  3. Click the Alternate Hierarchies tab. The Alternate Hierarchies page comes into view.
  4. Select the appropriate parent, and then click Assign. A new row appears.
  5. For Symbol to Assign, type the name of the entity you want to assign to the new hierarchy, or select an entity in the drop-down list. Alternatively, you can use the symbol selector. For more information on searching for symbols, see Using the Symbol Selector.
  6. For Parent, type the name of the desired parent symbol, or select an entity in the drop-down list. Alternatively, you can use the symbol selector. For more information on searching for symbols, see Using the Symbol Selector. By default, the Parent symbol is populated with the symbol that you selected in step 4.

    Caution: If you select a leaf symbol, that leaf will become a parent and, consequently, its data and settings are lost.

  7. Edit the following fields as necessary:
    Field Notes
    Sort Order

    Specify a numeric value from 1 and up representing the order of the symbol with respect to its parent. If you specify a value of 0, the symbol appears at the bottom of the list.
    Rollup Specify whether the entity has positive impact ( + ), negative impact ( - ) or no impact ( 0 ) on its parent. The default is +.
    Functional Currency Specify the functional currency to use for the entity.
  8. When you are finished, click OK. The entity is added to the alternate hierarchy.
  9. Click Save.

Working with regional groups

You can use regional groups for regions that require a group filing.

Adding regional groups

You can use the Entities editor to add regional groups.

To add a regional group

  1. In the Tax Provision navigation pane, click Administration, and then expand Entities.
  2. Click Entities. The Entities editor opens in the workspace with the Total Entities page in view.
  3. Click the Regional Groups tab. The Regional Groups page comes into view.
  4. Click Regional Group. A new row appears.
  5. Complete the following fields:
    Field Notes
    Name Type a name for the regional group. Regional Group names can include up to 25 alphanumeric characters and can contain underscores ( _ ) and periods ( . ).
    Description Type a description for the regional group. Regional group descriptions can be up to 100 characters.
    Functional Currency Specify the functional currency to be used for the regional group.
    Group Type Specify one of the following options for the reporting group type:
    • Consolidated
    • Combined
    • World-Wide
    • Waters Edge
    • Nexus Combined
    • Nexus Consolidated
    • Separate
    • Unitary

    Currently, this field is for information purposes only and does not impact calculations.
    Calculation Type

    Specify the calculation type for the regional group from one of the following options:

    • Consolidated Income — Calculates values at the legal entity level by multiplying the group's consolidated income by an apportionment factor equal to the legal entity numerator and the group's denominator. For this calculation type, the same income is used for each entity but a different apportionment factor is applied.
    • Consolidated Apportionment — Calculates values at the legal entity level by multiplying the legal entity's income by an apportionment factor equal to the group's numerator and denominator. For this calculation type, the same apportionment factor is applied to each entity but a different income is used.
    • Rollup — Calculates the result as the sum of tax calculated for each of the legal entities within in the group.
    • Group Consolidation Adjustment — Calculates tax at the consolidated group level, which is then compared to the sum of the entities within the group. Any difference is placed into a consolidation adjustment account or element. If you use this value, you must specify the entity in which to post this adjustment using the Group Adjustment Entity field.
    Group Adjustment Entity

    This field applies only when the Calculation Type is Group Consolidation Adjustment. Specify the entity in which to post the consolidated group adjustment.
  6. Click OK to return to the list.

    Caution: Once you click Save in the next step, you cannot delete a regional group or change its functional currency.

  7. When you are finished, click Save.
  8. Continue to Assigning entities to regional groups.

Assigning entities to regional groups

Once you have added regional groups, you can assign entities to them. Each regional group must have at least one entity assigned to it.

To assign entities to a regional group

  1. In the Entities editor, click the Regional Groups tab. The Regional Groups page comes into view.
  2. Select the appropriate regional group, and then click Assign. A new row appears.
  3. For Symbol to Assign, type the name of the entity that you want to assign to the regional group, or select an entity from the drop-down list. Alternatively, you can use the symbol selector. For more information on searching for symbols, see Using the Symbol Selector.
  4. For Sort Order, specify a numeric value from 1 and up representing the order of the symbol with respect to its parent. By default, the sort order for assigned symbols is 10 higher than the last child of the same parent. If you specify a value of 0, the symbol appears at the bottom of the list.

    Note: Sort Orders specified here apply only to the entity’s position in a Regional Group and do not apply to the entity in its original location.

  5. Repeat step 2 to step 4 to assign all entities to their relevant regional groups.

    Note: You can assign the same entity to multiple regional groups.

  6. Click OK to return to the list.
  7. When you are finished, click Save. 

Removing entities from regional groups

If an entity should not longer be a member of a regional group, you can remove it.

To remove an entity from a regional group

  1. In the Tax Provision navigation pane, click Administration, and then expand Entities.
  2. Click Entities. The Entities editor opens in the workspace with the Total Entities page in view.
  3. Click the Regional Groups tab. The Regional Groups page comes into view.
  4. Select the entity to remove, and click Remove.
  5. Repeat step 4 for each entity that you want to remove.
  6. When you are finished, click Save. 

Updating regional groups

If you need to update the properties of a regional group, you can do so using the Entities editor.

For information on updating the entities that are assigned to a group, see Assigning entities to regional groups and Removing entities from regional groups.

To update a regional group

  1. In the Tax Provision navigation pane, click Administration, and then expand Entities.
  2. Click Entities. The Entities editor opens in the workspace with the Total Entities page in view.
  3. Click the Regional Groups tab. The Regional Groups page comes into view.
  4. Select the regional group to modify, and click Properties. The row becomes editable.
  5. Modify the following fields as necessary:
    Field Notes
    Name Type a name for the regional group. Regional Group names can include up to 25 alphanumeric characters and can contain underscores ( _ ) and periods ( . ).
    Description Type a description for the regional group. Regional group descriptions can be up to 100 characters.

    Group Type

    		 Specify one of the following options for the reporting group type:
    • Consolidated
    • Combined
    • World-Wide
    • Waters Edge
    • Nexus Combined
    • Nexus Consolidated
    • Separate
    • Unitary

    Currently, this field is for information purposes only and does not impact calculations.
    Calculation Type

    Specify the calculation type for the regional group from one of the following options:

    • Consolidated Income — Calculates values at the legal entity level by multiplying the group's consolidated income by an apportionment factor equal to the legal entity numerator and the group's denominator. For this calculation type, the same income is used for each entity but a different apportionment factor is applied.
    • Consolidated Apportionment — Calculates values at the legal entity level by multiplying the legal entity's income by an apportionment factor equal to the group's numerator and denominator. For this calculation type, the same apportionment factor is applied to each entity but a different income is used.
    • Rollup — Calculates the result as the sum of tax calculated for each of the legal entities within in the group.

    Group Consolidation Adjustment — Calculates tax at the consolidated group level, which is then compared to the sum of the entities within the group. Any difference is placed into a consolidation adjustment account or element. If you use this value, you must specify the entity in which to post this adjustment using the Group Adjustment Entity field.
    Group Adjustment Entity

    This field applies only when the Calculation Type is Group Consolidation Adjustment.

    Specify the entity in which to post the consolidated group adjustment.
  6. Click OK to return to the list.
  7. When you are finished, click Save

Working with countries

Depending on your system configuration and the products you have purchased, you may be able to work with countries. Countries allow you to associate a country with an entity. Currently, countries are part of Tax Provision and Global Transparency.

Adding countries

You can use the Countries.lvapp to add countries to the list of available countries. You may want to, for example, add a sub-region, or need to add a country to reflect changing political and geographical landscapes.

Caution: Once you add a country, you cannot delete it. You can only modify the description and deactivate the country, if it is no longer used.

To add countries

  1. In either the Tax Provision or Global Transparency navigation pane, click Administration.
  2. Expand Entities, and click Countries. The Countries app opens in the workspace.
  3. Click Add. A new row appears at the bottom of the list.
  4. Specify the new country name, ISO Alpha Identifiers (if applicable), description, and whether the country is active or not.
  5. When you are finished, click Submit. The new country appears in the list.

Specifying active countries

You can use the Countries.lvapp to specify active countries. When you specify a country as active, the country appears in a drop-down list in the Country column of the Entities editor.

To specify active countries

  1. In either the Tax Provision or Global Transparency navigation pane, click Administration.
  2. Expand Entities, and click Countries. The Countries app opens in the workspace.
  3. Select the Active check box for all countries you want to make active.

    Note: Alternatively, you can deactivate a country already specified as active by removing the check box from the country, and proceeding to step 4.

  4. When you are finished, click Submit.

Modifying country descriptions

You can use the Countries.lvapp to modify country descriptions. Countries have standard ISO descriptions; however, you can modify the way a country’s description appears in your system. Country descriptions appear in the Country column in the Entities editor for countries specified as active. For more information, see Specifying active countries.

To modify country descriptions

  1. In either the Tax Provision or Global Transparency navigation pane, click Administration.
  2. Expand Entities, and click Countries. The Countries app opens in the workspace.
  3. Click the country name in the Description column for the country you want to modify.
  4. Type an appropriate description for the country.
  5. Click Submit. The country description is modified.

Assigning countries

You can use the Entities editor to assign an entity to a country. If you have specified countries as active using the Countries.lvapp, those active countries are available for assignment. For more information on specifying active countries, see Specifying active countries.

To assign an entity to a country

  1. In either the Tax Provision or Global Transparency navigation pane, click Administration.
  2. Expand Entities, and click Entities. The Entities editor opens in the workspace.
  3. For the entity to which you want to assign a country, select the relevant country from the list of available countries.
  4. When you are finished, click Save. The entity is assigned to the country.

Copying entity settings

If you have just added an entity and you want the added entity to have the same settings as an existing entity, you can copy the existing entity’s settings to the newly added one.

Note: Copy Entity Settings is available for leaf entities only.

To copy an entity’s settings:

  1. In the Tax Provision navigation pane, click Administration, and then expand Entities.
  2. Click Entities. The Entities editor opens in the workspace with the Total Entities page in view.
  3. Select the entity you want to copy settings to.
  4. Click Copy Entity Settings in the page toolbar. The Copy Entity Settings dialog opens.
  5. Type the name of the entity you want to copy from, or select an entity in the drop-down list. Alternatively, you can use the symbol selector. For more information on searching for symbols, see Using the Symbol Selector.
  6. Click Copy. The entity settings are copied to the specified entity.

Updating entities

If you need to make changes to an entity, you can do so using the Entities editor. Most changes can be made on the Total Entities page, but if, for example, you want to change an owner entity’s percentage or assign a different branch elimination to a branch entity, you will need to use the appropriate page.

To update an entity

  1. In the Tax Provision or Task Management navigation pane, click Administration, and then expand Entities.
  2. Click Entities. The Entities editor opens in the workspace with the Total Entities page in view.
  3. Click the tab for the page containing the entity you want to update.
  4. Select the entity you want to update.
  5. To update an entity’s name, description, sort order, or parent, click Properties. To update an entity’s settings, proceed to step 8.
  6. Edit the following fields as necessary:
    Field Notes
    Entity Name Type a name for the entity. Entity names can be up to 31 alphanumeric characters, and can contain underscores ( _ ) and periods ( . ).
    Description Type a description for the entity. Entity descriptions can be up to 100 characters.
    Sort Order

    Specify a numeric value from 1 and up representing the order of the symbol with respect to its parent. By default, the sort order for added symbols is 10 higher than the last child of the same parent symbol.

    If you specify a value of 0, the symbol appears at the bottom of the list.
    Rollup Specify whether the entity has positive impact ( + ), negative impact ( - ) or no impact ( 0 ) on its parent. The default is +.
    Functional Currency Specify the functional currency to use for the entity.

    Parent

    		 Select a symbol for the parent symbol for the entity. Type the name, use the drop-down list, or use the symbol selector to select the parent symbol. For more information on searching for symbols see Using the Symbol Selector.
  7. Click OK.
  8. Edit the following fields as necessary:
    Field Notes
    Type

    Select one of the following:

    • Legal Entity — Use this value for regular legal entities.
    • Branch — Use this value for foreign operations that should be treated as a branch operation of a domestic entity. For more information on how Tax Provision processes branches, see Understanding branches.
    • Branch Elimination — Use a Branch Elimination to offset the net income before tax that has been automatically populated to both the legal entity and the branch entity. This entity has no tax rate because it is used only to offset the duplicate net income before tax, and is included in the BRANCHES entity hierarchy under the BRANCHELIM parent.
    Jurisdiction

    Select a jurisdiction entity. This field is mandatory.

    Note: To select a jurisdiction, you must first create jurisdiction entities. For more information see Adding jurisdiction entities.

    Legal Entity Grouping

    Select a legal entity grouping. This field is optional. Entities that are children of the same Legal Entity Grouping must have the same functional currency.

    Note: To select a legal entity grouping, you must first create legal entity groupings. For more information see Adding legal entity groupings.
    Automation Group If you want to assign the entity to an automation group, select the appropriate automation group. If you select an automation group, the entity uses the automation settings assigned to the automation group for net income before tax, book-tax differences, or current and deferred tax accounts, unless you set an entity-specific override.

    Note: To select an automation group, you must first create automation groups. For more information see Adding automation groups.
    Calculate Regional Provision Select this option to calculate a regional provision for the entity.
    Calculate National Benefit of Region Select this option to calculate the national benefit of region for the entity. This option is available only if Calculate Regional Provision is selected.
    Use Deferred Tax Scheduling Select this option to calculate deferred tax scheduling for the entity.
    Discontinued Operation Select this option to remove the entity from Continuing Operation and move it to Discontinued Operation.
    Calculate Netting Adjustment

    This field displays only if Use Deferred Tax Netting is selected in the System Settings editor.

    Select this option to use jurisdictional netting for the entity.

    For more information see Configuring system switches.
    Automate Deferred Tax Amounts

    Depending on the values set for Deferred Tax Automation - Automation Method and Deferred Tax Automation - Display Automation Settings in the System Settings editor, this field may not display.

    Select this option to automate temporary difference ending balances for the entity.

    For more information, see Configuring Deferred Tax automation settings.
    Automate Current Tax Amounts

    Depending on the values set for Current Tax Automation - Allow Automation of Current Tax and Current Tax Automation - Display Automation Settings, this field may not display.

    Select this option to automatically transfer current tax amounts for Book-Tax Differences for this entity.

    For more information, see Configuring Current Tax automation settings.
    Automate Loss Carryforward Adjustment

    This field displays only if Use Loss Carryforward Automation is selected in the System Settings editor.

    Select this option to automate the loss carryforward adjustment.

    For more information see Configuring system switches.
    TARF Actual Transfer Timeframe Select a TARF timeframe for actual periods for the entity.
    Calculate Interim Select this option to calculate an interim provision for the entity.
  9. Do one of the following:
    • If you did not select Calculate Interim, continue to step 12.
    • If you selected Calculate Interim, complete step 10 and step 11.
  10. Specify the entity settings for interim ETR, if applicable.
    Field Notes
    Entity Level for Interim ETR

    Select the interim ETR level for the entity.

    • Legal Entity — Use this value to calculate the interim ETR at the legal entity level.
    • Sub-Consolidated — Use this value to calculate the interim ETR for the entity at a sub-consolidated level. If you use this value, you must specify a sub-consolidation parent for the Sub-Consolidation Entity for Interim ETR.

    This setting is available only if the Entity Level for Interim ETR system setting is set to Defined by Entity.
    Sub-Consolidation Entity for Interim ETR

    If you selected Sub-Consolidated as the Entity Level for Interim ETR, you must specify the sub-consolidation parent symbol to use for the interim ETR calculation. If the Entity Level for Interim ETR is Legal Entity, this setting is unavailable.

    This setting is available only if the Entity Level for Interim ETR system setting is set to Sub-Consolidated or Defined by Entity.
    Include in National Current Interim ETR

    Select this option to calculate a national current interim ETR for this entity. If you choose to exclude an entity from the interim ETR calculation, the entity’s national current interim ETR is adjusted to 0.

    If the Entity Level for Interim ETR system setting is set to Legal Entity, this setting is unavailable.
    Include in National Deferred Interim ETR

    Select this option to calculate a national deferred interim ETR for this entity. If you choose to exclude an entity from the interim ETR calculation, the entity’s national deferred interim ETR is adjusted to 0.

    If the Entity Level for Interim ETR system setting is set to Legal Entity, this setting is unavailable.
    Include in Regional Current Interim ETR

    Select this option to calculate a regional current interim ETR for this entity. If you choose to exclude an entity from the interim ETR calculation, the entity’s regional current interim ETR is adjusted to 0. This setting is available only if Calculate Regional Provision is selected for the entity.

    If the Entity Level for Interim ETR system setting is set to Legal Entity, this setting is unavailable.

    Include in Regional Deferred Interim ETR

    Select this option to calculate a regional deferred interim ETR for this entity. If you choose to exclude an entity from the interim ETR calculation, the entity’s regional deferred interim ETR is adjusted to 0. This setting is available only if Calculate Regional Provision is selected for the entity.

    If the Entity Level for Interim ETR system setting is set to Legal Entity, this setting is unavailable.
  11. Specify the interim rate change type:
    Field Notes
    Interim Rate Change Type

    This setting applies to ASC systems only.

    Select one of the following:

    • Actual — Bases the interim rate change on the actuals rate change.
    • Forecast — Bases the interim rate change on the full year forecasted amount.
    • Prorate — Bases the interim rate change on the prorated forecasted amount; prorated by number of months elapsed to total months in the year.

    This field is available only if Calculate Interim is selected.
  12. Specify the TARF timeframe:
    Field Notes
    TARF Interim Transfer Timeframe

    Select a TARF timeframe for interim periods for the entity. If you selected Calculate Interim, Longview recommends that you set this value to TFINTERIM. If you did not select Calculate Interim, Longview recommends that you set this value to TFACTUALS.

Specify a numeric value from 1 and up representing the order of the symbol with respect to its parent. By default, the sort order for added symbols is 10 higher than the last child of the same parent symbol.

If you specify a value of 0, the symbol appears at the bottom of the list.

Removing entities

You cannot delete an entity from the system once it has been created; however, you may be able to remove a symbol from its parent if the symbol exists under Total Entities and within an alternate hierarchy.

To remove an entity

  1. In the Tax Provision or Task Management navigation pane, click Administration, and then expand Entities.
  2. Click Entities. The Entities editor opens in the workspace with the Total Entities page in view.
  3. Do one of the following:
    • To remove an entity from Total Entities, continue to the next step.

      Note: When you remove an entity from TENTITIES, it is also removed from Jurisdictions and Total_Operations (if it exists under these parents).

    • To remove an entity from an alternate hierarchy, click the Alternate Hierarchy tab, and continue to the next step.
    • To remove a partnership from an owner entity, click the Partnerships tab, and continue to the next step.
  4. Select the entity to remove, and click Remove.

    Note: Remove is available for an entity only if it exists in Total Entities and within an alternate hierarchy.

  5. Click Save.

Exporting entities to Microsoft Excel

You can use the Entities editor to export entity information from all tabs in the editor to Microsoft Excel.

To export entity information to Microsoft Excel

  1. In the Tax Provision or Task Management navigation pane, click Administration, and then expand Entities.
  2. Click Entities. The Entities editor opens in the workspace with the Total Entities page in view.
  3. Click Export to Excel. A dialog opens.
  4. Select one of the following:
    • To export all entity symbols fully expanded, click Expanded View.
    • To export only the entity symbols visible in the current hierarchy expansion state for each tab, click Current View.

      Note: For more information on expanding and collapsing the symbol hierarchy, see Using context menus.

  5. The Save As dialog opens.
  6. Navigate to the location where you want the file to be saved.
  7. Type the name of the file you want the entity information to be exported to.
  8. Click Save. The file opens in Microsoft Excel.

Working with period-specific settings

Longview Tax provides you with the Period-Specific Settings administration app that you can use to modify settings at the entity level for a particular time period. These settings allow you to run calculations for the specified target time period.

The Period-Specific Settings administration app contains a toolbar. Review the following table for list of possible buttons and their functionality.

Button Description
Submit Click the Submit button to submit data to the database. For more information, see Submitting data to the database.
Refresh Click the Refresh button to update all information in the current view to reflect any changes that any other users have made.
Select Reference Period Click the Select Reference Period button to select the reference period to use for this scenario.
Copy from Reference Period Click the Copy from Reference Period button to copy the Interim ETR settings from the reference period to the current working period. This button copies settings for the current tab only and not all tabs in the app.
System Settings - Interim ETR

This button applies only to the Interim ETR tab.

Click the System Settings - Interim ETR button to specify the Entity Level for Interim ETR and Consolidation/Sub-Consolidation Hierarchy for Interim ETR system settings to the current working period. For more information, see Configuring Interim settings.
Options Click the Options button to modify display options. For more information, see Specifying display options.
Print Preview Click the Print Preview button to modify print options and view a print preview. For more information, see Printing input apps.
Export to Excel

Click the Export to Excel button to export data from the app to Microsoft Excel. For more information, see Exporting input apps to Microsoft Excel.

Modifying period-specific settings

You can modify the settings at the entity level for a particular time period so that you can run calculations for the specified target time period.

To modify period-specific settings

  1. In the Tax Provision navigation pane, click Administration.
  2. Expand Entities, and click Period-Specific Settings.lvapp. One of the following occurs:
    • A dialog opens in the workspace. Proceed to step 3.
    • The app opens in the workspace with the Scheduling tab in view. Proceed to step 6.
  1. Specify the Reference Period. You can select symbols by typing the symbol name or selecting the symbol in the hierarchy. Alternatively, you can use the symbol selector.
  2. Specify the specify the Target Period. You can select symbols by typing the symbol name or selecting the symbol in the hierarchy. Alternatively, you can use the symbol selector.
  3. Click OK. The app opens in the workspace with the Scheduling tab in view.
  4. For each entity in the scenario column, specify whether Use Deferred Tax Scheduling is applicable for the entity:
    • Scheduling — Use Deferred Tax Scheduling is applicable for the entity.
    • Regular — Use Deferred Tax Scheduling is not applicable for the entity.

    Note: You can use the Copy from Reference Period button to populate the settings from the reference period to the target period.

  5. Click the Partnerships tab.
  6. For each partnership in the scenario column, complete the following fields as needed:
    • Owner — Assign an owner entity to the partnership.

      Note: You can right-click an Owner cell and select Select owner to specify the owner entity.

    • Ownership % — Specify the percentage owned by the entity For example, for 35%, type 35. Ownership percentage totals cannot exceed 100%.
  7. Click the Interim ETR tab.
  8. For each entity, complete the following fields:
    Field Notes
    Entity Level for Interim ETR

    This field applies only for entities for which the Entity Level for Interim ETR setting in the System Settings editor is set to Defined by Entity.

    Select the interim rate level for the entity.

    • Legal Entity — Use this value to calculate the interim rate at the legal entity level.
    • Sub-Consolidated — Use this value to calculate the interim rate for the entity at a sub-consolidated level. If you use this value, you must specify a sub-consolidation parent for the Sub-Consolidation Entity for Interim.
    Sub-Consolidation Entity for Interim

    This field applies only for entities for which the Entity Level for Interim ETR setting in the System Settings editor is set to Defined by Entity or Sub-Consolidated. Specify the sub-consolidation parent symbol to use for the interim rate calculation.

    Note: You can right-click a cell and select Sub-Consolidation Entity to specify sub-consolidation parent.
    Include in National Current Interim

    Select TRUE to calculate a national current interim rate for this entity in the target period. If you choose to exclude this entity from the interim calculation by selecting FALSE, the entity’s national current interim rate is adjusted to 0.

    If the Entity Level for Interim ETR system setting is set to Legal Entity, this setting does not apply.
    Include in National Deferred Interim

    Select TRUE to calculate a national deferred interim rate for this entity in the target period. If you choose to exclude this entity from the interim rate calculation by selecting FALSE, the entity’s national deferred interim rate is adjusted to 0.

    If the Entity Level for Interim ETR system setting is set to Legal Entity, this setting does not apply.
    Include in Regional Current Interim

    Select TRUE to calculate a regional current interim rate for this entity in the target period. If you choose to exclude this entity from the interim rate calculation by selecting FALSE, the entity’s regional current interim rate is adjusted to 0. 

    If the Entity Level for Interim ETR system setting is set to Legal Entity, this setting does not apply.
    Include in Regional Deferred Interim

    Select TRUE to calculate a regional deferred interim rate for this entity in the target period. If you choose to exclude this entity from the interim rate calculation by selecting FALSE, the entity’s regional deferred interim rate is adjusted to 0.

    If the Entity Level for Interim ETR system setting is set to Legal Entity, this setting does not apply.
  9. Click Submit.
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